Swiss Market Ends Modestly Higher

What happened: The Swiss market ended modestly higher on Thursday, driven by a 104.59 point gain in the SMI benchmark, as investors reacted to a drop in U.S. consumer price inflation, raising hopes for a Federal Reserve interest rate cut in September. Despite a weak start, the market closed on a firm note on Monday, with the SMI up 74.47 points, thanks to late buying at several counters. The market also ended higher on Wednesday, Friday, and Tuesday, buoyed by strong buying support and positive earnings updates.

Market impact: The Swiss market's positive performance was broad-based, with stocks across sectors closing higher. Notable movers included Straumann Holdings, which soared after raising its outlook, and Givaudan, which surged on a rating upgrade. The market's strength was also driven by optimism about the outlook for interest rates and earnings.

What to watch next: Investors will be closely watching the Federal Reserve's policy announcement, due on Wednesday, for clues on the future trajectory of interest rates. Additionally, the release of Swiss unemployment data and earnings updates from major companies will continue to influence market sentiment. Technical levels around the SMI benchmark will also be closely monitored.