The Swiss stock market could continue to gain momentum in the short term
The Swiss Stock Exchange continues its slow rise initiated a few weeks ahead of the other main European indices. The SMI is even approaching a major resistance at around 11,380 points which it could reach next week if risk appetite strengthens next week, which is possible with the results of GAFAM and the Fed.
Indeed, with GAFAM results generally being solid and above expectations, risk appetite across all markets could strengthen next week, especially as the Fed is not expected to raise interest rates. 100 basis points as investors temporarily anticipated last week. The Federal Reserve should hold on to a 75 basis point rate hike, which is already historically significant, as implied by several Fed governors last week, including two particularly hawkish governors, namely Christopher Waller and James Bullard.
The results of the SMI companies will also have an important influence on the evolution of the index next week, in particular the results of the juggernaut Nestlé next Thursday. The results of UBS and Logitech will be published on Tuesday, those of Holcim and Credit Suisse on Wednesday and those of Swiss RE on Friday.
SMI daily price chart – key levels