Zurich (AWP) – The Swiss Stock Exchange is expected to have a sharp start to the session on Monday. While the other global markets were able to react on Friday at the blow of the customs duties of Donald Trump, the Swiss scholarship was closed due to national holidays.
The IG broker calculates a negative opening of almost 3% for SMI on Monday. Friday, the main European places had clearly fallen, for example 2.7% for the German Dax and 2.9% for the French CAC 40.
At Wall Street, the main indices had also clearly fell, mainly due to the weakness of data on the job market. The drop was between 1.2% and 2.0%.
The American president hit Switzerland hardly, inflicting an import tax of 39% on Friday, worse than fears, since it was a question of 31% last April. The measure comes into force on August 7.
In a comment, the chief economist of VP Bank Thomas Gitzel notes that Switzerland is one of the four nations most sanctioned by President Trump. Laos and Myanmar (each 40%) and Syria (41%) were struck even harder.
Analysts expect the watchmaker Swatch more strongly than his competitor Richemont. ODDO experts note that Biennois exported products in the United States are mostly manufactured in Switzerland and that it is mainly watches in the medium and low-end segments. If taxes come into force on August 7, price increases should exceed 20% to compensate them.
Pharma heavy goods vehicles should also suffer on Monday and weigh on the overall market. Even if Pharma products were to be exempt from taxes, Donald Trump wrote a letter to 17 Pharma groups on Thursday and demanded reduction in drug prices, under penalty of reprisals. American and European pharmacy values had already reacted on Friday. The awakening should be tough for Novartis and Roche on Monday.
We will also follow the reaction of Holcim, which recently separated from its activities in North America with the creation of Amrize. Zugois’ decision may well prove to be a master stroke.
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