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US and Switzerland reach tariff agreement

The US and Switzerland announced a new deal on Friday to reduce tariffs on Swiss imports from 39% to 15%. The announcement sent the Swiss franc to its highest level against the euro in a decade. Asian markets started the week mixed, with Japanese equities weighed down by China’s travel warning and new gross domestic product (GDP) data signalling contraction. US indices closed Friday with a modest recovery led by technology shares; meanwhile, European benchmarks saw sharp declines to finish the week. Gold prices were under pressure on Monday, trading around USD 4060 per ounce, while bitcoin slipped to about USD 95,200.

  • Date
  • Auteur Shane Strowmatt, Senior Investment Writer
  • Temps de lecture 5 minutes

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The US and Switzerland reached an agreement on Friday to lower tariffs on Swiss imports to 15%, down from the 39% rate imposed in July, in a move expected to stabilise bilateral trade after months of negotiation. As part of the deal, Swiss firms committed to invest around USD 200 billion in the US by the end of 2028, targeting sectors such as manufacturing, pharmaceuticals, and railway equipment. The Swiss franc strengthened 0.4% against the US dollar following the announcement. Swiss officials indicated the tariff reduction should support the country's export-driven economy, which has faced headwinds from higher duties in recent months. The Swiss franc strengthened on Friday, reaching its highest level against the euro in a decade. The Swiss Market Index decreased 0.8% amid a broader sell-off in European markets.

Central banks and inflation releases drive markets

This week, global markets turn their attention to a packed schedule of central bank commentary and inflation data. Several members of the Federal Reserve (Fed) and the Bank of England’s Monetary Policy Committee are slated to speak, culminating with the release of the Fed’s meeting minutes on Wednesday and remarks from ECB President Christine Lagarde on Friday. Updated consumer inflation figures are due from the United Kingdom (Wednesday), eurozone (Wednesday), and Japan (Friday). Purchasing Managers’ Indices across the eurozone, Germany, France, the UK and the US round out the week on Friday, offering fresh insight into momentum in many of the world's largest economies. Data begins to flow out of the US again following the recent government shutdown: the delayed labour report for September is due on Thursday. Earnings season continues with closely watched reports from Nvidia (Wednesday) and Walmart (Thursday), whose results serve as key barometers for global technology innovation and consumer demand trends, respectively.

Asia-Pacific stocks mixed amid regional tension

Asian equity markets saw varied performance on Monday as heightened diplomatic strains between China and Japan weighed on sentiment, particularly for Japanese tourism-related shares, after Beijing issued a warning advising its citizens to reconsider travel and study plans in Japan due to increased bilateral friction. Japan's Nikkei 225 was little changed, after the nation's GDP fell by 0.4% in the third quarter compared to the previous three months, marking its first contraction in six quarters, according to government data released on Monday. The annualised decline of 1.8% was smaller than economists had anticipated, as growth in public and private consumption helped limit the downturn. South Korea’s Kospi rose 1.9%, while Australia’s S&P/ASX 200 was flat and Hong Kong’s Hang Seng Index dropped 1.1%. Mainland China’s CSI 300 decreased 0.8%.

Nasdaq recovers after early decline

Major US stock indices saw mixed performance on Friday, with the Dow Jones Industrial Average falling 0.7% to 47,147.48 points, while the Nasdaq 100 rose slightly by 0.1% to 25,008.24 points after initially reaching its lowest level since mid-October. The S&P 500 lost 0.1%. Market sentiment remained cautious, as doubts grew over the likelihood of a third interest rate cut by the Federal Reserve (Fed) this year, following recent muted statements from Fed officials. The outlook for US jobs data and corporate developments, such as Walmart’s planned leadership change and Merck’s intended acquisition, shaped trading focus ahead of Thursday’s upcoming delayed employment report.

Euro-area GDP and employment edge higher

Euro-area gross domestic product (GDP) grew by 0.2% in the third quarter of 2025 compared with the previous quarter, an improvement from 0.1% growth in the second quarter, while annual GDP growth eased slightly to 1.4%. Employment in the euro area increased by 0.1% over the same period, matching the gain from the previous quarter, with year-on-year employment growth slowing to 0.5%. In the EU as a whole, GDP advanced by 0.3% and employment by 0.2% quarter-on-quarter. The latest figures, released on Friday, point to modest but steady expansion in output and labour markets across the region. European stock indices declined sharply on Friday. The Euro Stoxx 50 lost 0.9%, while Germany’s DAX dropped 0.7% to 23,876.55 points and France’s CAC 40 fell 0.8% to 8170.09 points.

Corporate and economic calendar

Corporate news in focus: There is no major corporate news scheduled today.

Economic data in focus: Swiss gross domestic product (09:00), Italian Consumer Price Index (10:00), EU economic forecasts (11:00), Bundesbank monthly report (12:00), Canadian Consumer Price Index (14:30), Empire State Manufacturing Index (14:30).

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Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.