The SMI ends up falling while waiting for Jerome Powell
While the Swiss stock market showed resilience in the face of renewed risk aversion in the markets since last week, buyers finally let go on Tuesday. The SMI fell 1.4%, pulled down by 18 of its 20 stocks, including its three behemoths Nestlé (-1.8%), Roche (-2.2%) and Novartis (-2.0% ).
The stock market was weighed down by weaker-than-expected PMI surveys, continuing to point to decelerating economies in Europe, the US and Japan, and other disappointing US data, including new home sales which are down. fell to their lowest level since 2016.
At the same time, traders are taking a cautious stance ahead of the much-anticipated Jackson Hole symposium at the end of the week, during which the Fed Chairman could be more hawkish. Indeed, Jerome Powell is likely to take a tougher stance given the strong rebound in markets this summer and recent expectations of operators’ rate cuts in 2023 which go against the Fed’s objective of tightening conditions. funding.
Pending Powell’s speech on Friday afternoon, trader sentiment could hinge on the IFO survey in Germany on Thursday and the PCE core index in the US on Friday.
4 hour chart of SMI price (Swiss Blue Chip CFD) – key levels