Swissquote Bank Research Team
Swissquote Bank Ltd
Swiss exports have been growing fast, thanks to a rebound in Swiss exporting industries. Key support for the recovery are chemical and pharma products, which reached CHF 9 billion in exports for October, adding CHF 937 million of trade surplus. In total, the trade balance is estimated at CHF 2.6 billion in October (exports: CHF 18.90 billion; imports: 16.2 billion; September’s trade balance: CHF 1.27 billion). The growth of demand in Swiss products by largest trading partners increased by +7.60% (CHF 774 million) in Europe, +3% (CHF 126 million) in Asia and decreased by -0.5 % (CHF -17 million) in North America. Accordingly, Swiss exports are expected to remain positive by the end of the year, as consumer demand is expected to rise at year-end. Total sight and domestic deposits remain stable at CHF 577.3 billion and CHF 474.4 billion respectively. USD/CHF is currently trading at 0.9926, declining by -0.13% (year-to-date: +1.81%) since last week and heading along 0.9910 short-term.
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Markets red on US-China rivalry
President Xi Jinping’s meeting in Manila, Philippines, the first Chinese state visit in the region in 13 years, is expected to tighten the relationship between the Pacific neighbors. After their first meeting last week in Papua New Guinea, Chinese and Philippine leaders will sign investment deals in infrastructure worth USD billions, including investment in the former US Clark military base, to make it a modern city.
The recovery in US equities last week was unsustained, led by a sharp drop in tech stocks among which Apple (-3.96%) and the tech stock index Nasdaq closing at -3.03%. The S&P 500 and the Dow Jones Industrial Average also remained negative at -1.66% and -1.56% respectively. Asian shares endured the same fate, with Japanese Nikkei 225 down -1.09%, Nissan shares down -5.45%. Chinese markets have been facing a sharp drop with China mainland down -2.31% and Hong Kong Hang Seng -2.02%. European equities remain in the red across the board. The DAX leads the drop with a decline of -1.08% while the Euro STOXX 50 remains at -0.84%. Risk-off sentiment dominates the marketplace.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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