Zurich stock market: indices seek direction at opening
In Switzerland, the results season put AMS in the spotlight, as Roche suffered a failure for its drug Actemra.
“Equity markets are hesitant as the latest corporate publications begin to paint a picture of a global economy on the verge of a rough patch in the weeks and months to come,” commented CMC Markets analysts in their morning note. “Hopes of a V-shaped economy recovery seem increasingly unlikely,” they added.
In addition to corporate results, investors will be interested in statements by Fed Chairman Jerome Powell in the evening after a meeting of the monetary committee.
Among the macroeconomic news, household morale fell again in July in France, while building permits, a pledge of future activity, fell. In Switzerland, the CS-CFA index will provide information on the economic situation.
At 9:20 a.m., the SMI lost 0.22% to 10,254.70 points, while the SLI and SPI each dropped 0.15% to 1557.45 and 12,700.95 points, respectively. Of the thirty star values, eleven were in green, sixteen in red, and three in equilibrium.
Roche (-0.5%) weighed on the index. The Basel juggernaut suffered a setback in a first installment of advanced clinical research examining the effect of its anti-inflammatory drug
Actemra / Roactemra (tocilizumab) in patients hospitalized for a severe form of pneumonia associated with Covid-19.
Novartis (-0.7%) also weighed as the third heavyweight Nestlé (+ 0.1%) climbed into the green.
Red lantern, AMS (-5.9%) fell sharply, despite better than expected results and favorable analyst comments. The Cantonal Bank of Zurich (ZKB) believes that the stock is still largely undervalued.
Among the few winners, Credit Suisse (+ 0.4%) stood out, on the eve of the publication of its quarterly results. Partners Group, Logitech and Swiss Life (each + 0.4%) completed the podium.
In the broader market, a slew of companies released their results, including Inficon (-1%), Zehnder (+ 2.4%), Cassiopea (-0.3%), Calida (+ 0.7%) and Novavest (+ 1.3%).
Lem (+ 2.3%) also published its performance in the first quarter of its staggered 2020/2021 financial year. Read the details here
The pharmaceutical company Relief Therapeutics (+ 9.3%) has obtained from the American health authorities (FDA) that more patients suffering from the coronavirus can use its drug RLF-100 (Aviptadil) for the treatment of respiratory problems.
The organizer of fairs and events MCH (no course) has issued a warning on results for the current financial year. The turnover risks being cut in half. (AWP)