Deep red trading days Swiss stock market in the red again

As the share prices of heavyweights such as Novartis, Roche and Nestlé fall, the leading Swiss index SMI is once again in decline today. London and Frankfurt are also in the red.

Although the European financial markets got off to a slightly firmer start to trading today (Tuesday), they quickly fell back into the red.

The Swiss stock market also continued its slide after two previous days of deep red trading. It is being weighed down by the declining heavyweights Novartis, Roche and Nestlé, among others.

The turnaround shows that investor confidence in the stock markets has not yet returned, said one trader. US recession and war worries had recently led to heavy price losses on the international stock markets.

The leading Swiss index SMI lost more than 6 percent overall. According to the market, the indices are usually able to recover in response to such cuts. However, this has not yet been the case for the SMI, as the bargain hunters who are often present in these phases have not become active.

SMI falls to 11,462 points

The SMI fell by 0.7 percent to 11,462 points shortly before 12 noon today. It was last at this level at the beginning of May. Other European share indices such as the Dax in Frankfurt (-0.4%) and the FTSE100 in London (-0.2%) also slipped into negative territory in the course of the morning. In contrast, the Tokyo stock exchange managed to bounce back after massive losses with a 9.5% jump in share prices.

Although the situation on the currency front has eased, the euro and the US dollar remain at a low level against the Swiss franc, which is considered a "safe haven". The euro moved above the 93 centime mark, but is now trading only slightly above this threshold at 0.9318 francs. The US dollar, on the other hand, is defending the 85 centime level well at 0.8540 francs.

In the course of trading, the Swiss stock exchange is being dragged down primarily by the extended losses of the heavyweight Roche participation certificates (-1.2%), Novartis (-0.9%) and Nestlé (-0.3%). However, the luxury goods group Richemont (-1.9%) and other cyclical stocks such as Logitech (-1.8%) and the goods inspector SGS (-1.7%) also fell sharply.

The few blue chip gainers include Sonova (+4.4%), Straumann (+1.2%) and Swiss Re (+1.1%).