The Swiss Market Index experienced a decline of 1.33% on Friday, concluding a session rich in data insights. Preliminary estimates from the State Secretariat for Economic Affairs indicate that Switzerland's GDP grew by 0.2% in the third quarter, following a revised growth of 0.5% in the second quarter, when adjusted for sporting events. In October, the nation's producer and import price index saw a decrease of 0.3%, building on a slight decline of 0.1% in September, as reported by the Swiss Federal Statistical Office.
Year-over-year data revealed a reduction in producer and import prices by 1.8%. Turning to the euro area, the European Commission's autumn economic forecast recently revised down its GDP growth projections for the European Union for both 2024 and 2025. ING analysts mentioned that markets are justified in lowering their expectations for the European Central Bank's (ECB) terminal rate.
They also noted that it remains premature to decisively predict a 50 basis points cut for December. The ECB's recent communications underscore the complexities of the current economic landscape, where growth appears to be gradually diminishing even as inflation has yet to be fully tamed. On the corporate front, Swiss pharmaceutical giant Sandoz ($SDZ) has received marketing authorization from the European Commission for Afqlir, its biosimilar to Eylea, aimed at treating various retinal ailments.
The launch of this biosimilar is projected for the fourth quarter of 2025, and Sandoz shares rose by 1.01% at market close. Conversely, Swiss Steel Group (STLN.SW) faced a sharp decline of 3.77% after announcing plans to cut 800 full-time positions as part of a strategy to reduce its workforce and production capacities, amid ongoing weak demand and challenging economic conditions.
The group anticipates shrinking its workforce to below 7,000 employees by the first half of 2025..