Zurich (AWP) – The Swiss Stock Exchange is expected to react negatively on Monday on customs duties of 39% imposed by the United States on Swiss imports. Watchmakers and luxury values, as well as pharmaceutical titles should be particularly jostled by the unexpected level of taxes imposed on Swiss exports.
“It is a real shock. Switzerland, often spared by geopolitical turbulence, is brutally targeted by the new US tariff salvo,” said John Plassard. According to the head of the Cité Management investment strategy, “with a 39 % customs right – one of the highest in the world – it undergoes treatment that even its European partners have avoided”.
For Ipek Ozkardeskaya, analyst in Swissquote, “the effect of customs duties will be persistent but unequal. Large tech, finance, services and communication companies are seen as the winners of this chaotic reorganization of world trade. Consumer goods, energy, real estate and health are among the most exposed. (…) In the end, American consumers will end up paying the big taxes “.
“If Switzerland does not risk a brutal recession, the shock will weigh on the margins of multinationals, with up to $ 800 million in potential annual losses for Novartis and more than a billion Swiss francs accumulated for rock by 2026”, for its part assessed the director of investments of Oddo BHF Switzerland, Arthur Jurus.
Investors also reacted negatively to the “disappointing” employment data in the United States, LBBW experts commented. The situation deteriorated in July, with an unemployment rate increased at 4.2%. The job creations were established at 73,000 in July and those in May and June were strongly revised.
Shortly before 8:10 am, the SMI star index was preparing to start the session down 2.13% to 11,583.41 points, after closing Thursday in decline by 0.80%, according to the front-end indications compiled by the bank Julius Bär. The Zurich square remained closed on Friday due to the national holiday of August 1.
All of the star values were preparing to open in red, including luxury titles Swatch (-3.9%) and Richemont (-4.2%), particularly dependent on their exports to the United States.
Logitech (-4.7%) and ABB (-3.5%), very established across the Atlantic, also lowered.
The pharmaceutical values, for the time being exempt from customs duties but under the threat of a drop in prices, were also penalized. Novartis (-1.6%), Roche (-1.6%) and Lonza (-2.1%) did not escape the negative trend.
UBS (-2.7%) agreed to pay a slate of $ 300 million in the United States Department of Justice (DOJ) to settle a residual case of Credit Suisse in the file of financial products backed by mortgage credits (subprime).
Sig Group (-1.6%) announced the departure of its managing director Samuel Sigrist with immediate effect. Ann-Kristin Erkens resumes his acting functions.
Al/Jh
