^SSMI Today, January 9: Swiss Stocks Slip on PMI Slump, CPI at 2%
The Swiss Market Index is lower on January 9 as weak factory data meets steady inflation in Europe. Switzerland’s manufacturing PMI fell to 45.8 in December, while services edged back above 50. Eurozone CPI held at 2.0% year over year, easing rate fears but not growth worries. By midday, the index (^SSMI) trades near 13,247, down about 0.6%. We see cyclicals under pressure and defensives firmer on the SIX Swiss Exchange as investors lean toward earnings stability.
Swiss Market Index Today: Moves, Levels, and Breadth
The index slipped about 0.6% to 13,247, down 76.71 points, with an intraday range between 13,137 and 13,247. Market breadth looks mixed, with heavyweight defensives helping limit losses. The Swiss Market Index sits below its 52-week high at 13,394, reflecting caution after recent gains. We see traders trimming exposure to growth-sensitive names while keeping core positions in quality blue chips.
Momentum is still firm but overbought: RSI is 78. Price holds above the 50-day average at 12,766 and the 200-day at 12,303, a positive longer trend. Volatility is moderate, with ATR near 108. Price is close to the upper Bollinger Band at 13,419 and Keltner resistance around 13,335. That setup argues for patience on new entries.
Defensive sectors such as staples, healthcare, and utilities steady the Swiss Market Index, while industrials and financials lag. The tilt reflects today’s data mix and a preference for earnings resilience on the SIX Swiss Exchange. We also note sensitivity to the franc: any CHF strength can weigh on exporters and cyclicals, reinforcing a defensive bias.
Macro Drivers: PMI Slump and Eurozone CPI at 2%
Switzerland’s manufacturing PMI dropped to 45.8 in December, signaling deeper contraction, while services rose back above the 50 line. The split points to ongoing factory weakness but steadier domestic demand. Today’s tone mirrors that mix, with cyclicals softer. Industry sentiment deterioration was flagged by local reports source.
Eurozone CPI printed 2.0% year over year in December, matching expectations and suggesting inflation is contained for now. That stabilizes rate expectations and supports defensives via lower discount-rate pressure, but it does little for growth momentum. The print was broadly in line with market calls source.
Sector Implications on the SIX Swiss Exchange
With Swiss manufacturing PMI weak and Eurozone CPI at 2.0%, investors favor reliable cash flows. Large-cap staples, healthcare, and utilities usually provide steadier earnings and dividends. Within the Swiss Market Index, these groups can cushion index swings. We see selective buying on dips, especially where valuations remain near multi-year averages and payout visibility is strong.
Industrials, chemicals, and banks tend to feel pressure when factory output contracts and global demand is soft. A firm franc can add another drag to export margins. For the Swiss Market Index, that means performance is likely to split: defensives up, cyclicals lagging. We would watch earnings guidance closely for signs of order-book stabilization.
Strategy Check for the Swiss Market Index
Near-term resistance stands around 13,335 to 13,419, with the 52-week high at 13,394. Initial support sits near 13,100 and then 13,000. We track CHF moves, global yields, and incoming European data for risk tone. For now, a buy-the-dip approach favors defensives, while cyclicals need clearer signs of factory momentum.
A stronger Swiss manufacturing PMI, better export orders, or upbeat earnings could lift cyclicals and broaden gains. Conversely, a stronger franc or softer global growth would keep pressure on the same groups. For the Swiss Market Index, sustained trading above the upper bands would need confirmation from improving growth indicators, not just stable inflation.
Final Thoughts
Swiss stocks eased after a weak Swiss manufacturing PMI and steady Eurozone CPI at 2.0% year over year. The Swiss Market Index trades near 13,247, below its recent high, with defensives cushioning declines and cyclicals under pressure. We think near-term leadership stays with staples, healthcare, and utilities, while industrials and banks await clearer signs of demand. Traders can track resistance near 13,335 to 13,419 and support near 13,100 to 13,000. Until factory activity improves, we prefer staggered entries into defensives and tactically manage cyclicals around earnings updates, currency shifts, and fresh PMI readings.
FAQs
Why is the Swiss Market Index down today?
Weak Swiss manufacturing PMI at 45.8 signals factory contraction, pressuring cyclicals. Eurozone CPI at 2.0% stabilizes rate expectations but does not boost growth. Together, these factors tilt flows toward defensives and away from growth-sensitive shares, pulling the index modestly lower.
What does a Swiss manufacturing PMI of 45.8 mean?
A PMI below 50 shows contraction. At 45.8, Swiss factories report shrinking activity, often tied to slower orders and output. This can weigh on industrials, exporters, and banks on the Swiss Market Index, while investors look for stability in defensives until momentum improves.
How does Eurozone CPI at 2.0% affect Swiss stocks?
Inflation at 2.0% lowers pressure for more tightening, which helps defensives by supporting valuation multiples. However, it does not guarantee stronger growth, so cyclicals may not rally. For Swiss shares, steady inflation is a mild positive if paired with better activity data and a stable franc.
What key levels matter for the Swiss Market Index now?
We are watching resistance near 13,335 to 13,419 and the 52-week high at 13,394. Initial support sits around 13,100, then 13,000. Holding above the 50-day average near 12,766 keeps the broader uptrend intact, but overbought momentum suggests patience on fresh entries.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
