Swiss Market Climbs on Strong Business Confidence and Exports

Swiss Market Gains. The Switzerland market extended its winning streak fueled by a rise in business confidence alongside a record increase in exports. Data indicated a significant improvement in trade surplus, positively influencing investor sentiment.

Date: 30-01-2025

AI Rating: 7

Positive Trends in Business Confidence and Trade
The report highlights an improvement in Swiss business confidence, which increased to 101.60 points in January 2025 from 99.60 points in December 2024. This uptick suggests a more optimistic outlook for businesses, which can lead to increased spending and investment, potentially boosting stock prices.

Furthermore, there was a notable increase in the foreign trade surplus, which rose to CHF 60.6 billion in 2024 from CHF 48.3 billion in 2023. The record increase in exports by 3.2% contrasts with the previous year’s decline of 1.3%. Such strong trade performance can indicate demand for Swiss goods, enhancing investor confidence.

Impact on Earnings and EPS
Roche Holding’s performance further illustrates positive market conditions, reporting a core operating profit increase of 14% and a rise in core earnings per share (EPS) to 18.80 francs, up from 18.57 francs. The report also mentions a 12% base-excluding rise in core EPS, suggesting healthy profitability which may attract investors.

ABB's Mixed Report
Although ABB experienced a 7% increase in net income to $987 million and a 7% growth in basic earnings per share to $0.54, a decline in its stock price indicates investor concerns despite positive earnings growth. This mixed sentiment can affect stock prices variably depending on broader market trends.

Stocks: ROG ABB