SMI Down 0.23 Percent Around European Midday After Record Session

The SMI traded lower around Europe’s midday on Friday after setting a fresh intraday record during the previous session. The Swiss blue-chip index stood at 15,115.29 points at 12:09 Berlin time, according to the live market panel on finanzen.ch. That was 34.14 points, or 0.23 percent, below Thursday’s close of 15,149.43 points.

Profit-taking After Record High

Thursday’s advance had taken the SMI to a new intraday record of 15,200.17 points before the index finished 0.63 percent higher. The pullback on Friday therefore came as the market consolidated near elevated levels rather than extending the previous session’s advance. The SIX identifies the SMI as Switzerland’s blue-chip equity index, comprising the 20 largest and most liquid SPI stocks.

Rates and Energy in Focus

Market sentiment was pressured by higher oil prices and rising US Treasury yields. A report from RTTNews published by finanzen.ch said Brent crude was trading above 96 US dollars a barrel as Middle East supply risks offset signs of rising output. The same report cited stronger expectations of tighter Federal Reserve policy and noted that the US dollar had reached its highest level in about 19 months.

The move also reflected a broader European retreat from record levels. The Edge Research Team reported the SMI at 15,087.45 points, down 0.41 percent, at 08:47 GMT, equivalent to 09:47 Berlin time. The snapshot showed Switzerland’s benchmark among the weakest major European indices early in the session.

US Data Ahead

Investors were looking ahead to the US producer-price report for October, due at 14:30 Berlin time. The data was expected to provide a further test for market expectations around the Federal Reserve’s rate path. For the SMI, the combination of expensive energy, higher bond yields and uncertainty around technology stocks remained a counterweight to the support provided by defensive Swiss equities.

Further coverage is available on the SMI topic page.