Swiss equities remained stable on Tuesday, with the Swiss Market Index increasing slightly by 0.01% at closing during a relatively calm day in terms of local economic news. In the United States, the producer price index for final demand, adjusted seasonally, experienced a monthly increase of 0.2% in December 2024, a decrease compared to 0.4% recorded in the previous month, which fell short of market expectations of 0.3%.
Analysts believe this week's US inflation data could bolster the dollar's positive momentum and heighten uncertainty surrounding the necessity for the Federal Reserve to implement rate cuts. The upcoming Consumer Price Index (CPI) is anticipated to have the most significant market influence, while today’s Producer Price Index (PPI) remains crucial as many of its components contribute to the Fed's favored inflation measure—the core personal consumption expenditures (PCE).
On the local front, Italy's industrial production reported a surge of 0.3% in November 2024, building on a revised 0.1% increase in the preceding month. This latest data shows the index's second consecutive rise, as per findings from the Italian statistics agency, Istat. Economists had forecasted a growth rate of 0.2%.
In corporate news, Swiss chocolate manufacturer Lindt & Sprüngli AG ($LISN) saw a notable increase of 3.30% in its shares, having posted robust organic sales growth of 7.8% for fiscal year 2024, elevating group sales to 5.47 billion francs due to remarkable results and increased market share across all regions.
Looking ahead, Lindt & Sprüngli anticipates achieving organic growth between 7% and 9% in 2025. Meanwhile, Temenos ($TEMN) also experienced a rise in share prices, closing up by 5.34% after Baader Helvea raised its price target for the Swiss banking software firm from 56 francs to 65 francs, while reaffirming its reduced rating.
This adjustment reflects Temenos' preliminary results for Q4 2024, which outperformed both consensus and Baader’s estimates, primarily fueled by a 10% year-over-year increase in software licensing at constant currency. The company’s preliminary revenue surged to $318.9 million for the quarter, compared to $298 million in the same period last year.
Analysts noted that the Q4 2024 results could indicate either increased spending from budgets, adapted to a challenging macroeconomic environment, or the initial positive outcomes of initiatives launched by the new CEO. Final growth expectations will be reassessed after the complete Q4 2024 results are released on February 18, 2025..