(AWP / SPU) The Swiss equity market eased on Monday, continuing the downward trend initiated at the end of the previous week. The leading index Swiss Market Index SMI (SMI 9390.27 -2.48%) lost 2.1% shortly after opening. It fell below 9400 in early trading. It hovered around this mark until the end of trading and was below it at the end of trading. After the strong recovery from the end of March to almost the end of April, the mood turned negative again. This was triggered by the new tensions between the USA and China. US President Donald Trump wants evidence that the corona pandemic may have originated in a Chinese research laboratory. The President’s renewed rhetoric fueled fears of a renewed start to the trade dispute, it was said in the trade.
According to the online bank Swissquote, investors are currently being bombarded with weak economic data and mixed to poor corporate results (SQN 61 -2.4%). If, in addition to the strains caused by the measures against the corona virus, there were new indications of a resurgent conflict between the USA and China, hopes for a reasonably swift recovery in the global economy would be dampened again.
In New York, too, the signs were mostly negative. However, there was no major price slide on Wall Street until the end of trading in Europe. The broad S&P 500 (SP500 2842.1 0.4%) lost 0.5%. The Dow (DOW 33.03 -2.65%) Jones (Dow Jones 23748.56 0.1%) gave way 1%. Meanwhile, the index of the technology exchange, the Nasdaq Composite, turned positive and traded 0.3% firmer.
Lonza and Roche on top
Lonza in particular closed at the SMI (LONN 435 3.23%) firmer. News of a collaboration with the US biotech company Moderna gave a boost here. It’s about the development of a Covid-19 vaccine.
Roche participation certificates also rose with a plus (ROG 337.6 0.64%) against the trend. After the company announced two weeks ago that it was working on a new corona test, the FDA approved it overnight on Sunday.
The fact that the SMI’s minus was not even greater was largely due to the comparatively stable heavyweights. Nestlé’s losses (NESN 99.81 -2.05%) were limited. At Novartis (NOVN 80.55 -2.08%) the taxes were somewhat higher.
Big banks such as UBS saw a major drop (UBSG 9,752 -5.69%) and Credit Suisse (CSGN 8,196 -6.07%). In the abbreviated previous week, they were by far the strongest winners with an increase of just under 13% (CS) and just under 14% (UBS). Therefore, they would also have the greatest profit-taking potential in the now negative mood, according to market circles. Bank Berenberg also lowered the rating to “hold” for UBS, thereby canceling the buy recommendation.
Insurance shares such as Swiss Re (SREN 65.4 -6.12%), Zurich Insurance (Angry 290 -5.63%) or Swiss Life (SLHN 324.1 -5.21%) were under pressure again. For Swiss Re, the Deutsche Bank had (DBK 6,426 -5.19%) lowered the price target, referring to the high insurance costs associated with Corona.
There were significant levies on economically sensitive papers such as ABB (ABBN 17.34 -5.38%), Adecco (ADEN 40.82 -3.52%), Richemont (CFR 52.46 -4.3%) and Swatch Group (CLOCK 183.2 -5.15%).
Geberit (RESULT 409.8 -5.38%) were upgraded from “Underperform” to “Neutral” by Credit Suisse, following the unexpectedly strong quarterly figures presented on Thursday.
At the end of the SMI table, the shares of the eye care specialist Alcon were (ALC 48.1 -5.58%).
Dufry was clear
Heavy losses in the SMIM (SMIM 2229.304 -3.08%) Dufry travel retailer stocks (DUFN 29.45 -6.3%). They broke with the recovery trend of the past few days. In the past week, voices were heard on the market that described the worst-case scenario designed by management as too optimistic. Zurich Airport was also weak (FHZN 110.3 -7.39%).
The titles of the chip manufacturer AMS (AMS 12.67 0.8%) turned positive after making significant corrections in early trading. Logitech too (LOGN 46.51 0%) found the way to plus. Another tech value, namely Temenos (TEMN 120.25 -4.26%), meanwhile remained deep in the minus.
VAT Group (VACN 152 -4.52%) came back from their recent high with clear losses. Other industrial stocks like Clariant (CLN 16,995 -4.87%) or Georg Fischer (FI-N 679 -5.63%) also lost.
The shares of the mail order pharmacy Zur Rose (ROSE 157 -0.88%) recovered from initially clear losses. However, they were close to their all-time highs so far. The Kreuzlingen public prosecutor has filed charges against CEO Walter Oberhansli.
Ypsomed (YPSN 134.8 6.14%) clearly gained in value. The medical technology company has entered into a partnership in the field of diabetes therapy with the American Dexcom, which is well received by analysts and investors.
Newron’s stock price (NWRN 1.8 -71.2%) was pulverized. The stocks lost roughly 90% after the biopharmaceutical company failed with an important study.
Rather weaker picture in Asia
In Asia, the stock markets were not very meaningful on Monday. The stock exchanges in Japan and mainland China remained closed due to a public holiday. The Hang Seng (Hang Seng 23613.8 -4.18%) Hong Kong fell 4%, Korean Kospi dropped 2.7%.
Euro exchange rate lower against the dollar
The euro exchange rate dropped noticeably on Monday. In the evening, the common currency was $ 1.0916, half a cent less than in Asia. Traders gave the stronger dollar as the reason. The euro fell slightly against the franc compared to Friday evening. At the close of trading in Europe it cost CHF 1.0532. The dollar rose somewhat to CHF 0.9650.
Oil price clearly in the plus
The oil price was higher on Monday evening. One barrel (159 liters) of the North Sea Brent (Brent 27.8 7.59%) cost around $ 26.50. In early trading, the recently tightened rhetoric of US President Donald Trump towards China due to the corona crisis had depressed the listing. This had raised concerns about the trade dispute boiling up again. In a paper by Western intelligence agencies, China has also been sharply criticized for dealing with the corona crisis. Another trade conflict could put a strain on the global economy and dampen the demand for crude oil, it was said in trade.
Meanwhile, gold was listed (gold 1704.39 0.23%) little moves at the $ 1,700 mark per troy ounce.
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