SMI Edges Higher Amid US Tariff Uncertainty

The Swiss Market Index (SMI) finished Tuesday's session marginally higher, closing at 11,970.65, a gain of 16.11 points or 0.13%. Despite the positive close, the index experienced volatility throughout the day, dipping to an intraday low of 11,877.48 before a late surge of buying activity pushed it to its daily high at the close. Market sentiment remained cautious as investors monitored escalating trade tensions between the U.S. and its European partners. U.S. President Donald Trump has extended the tariff negotiation deadline to August 1, while simultaneously notifying 14 countries—including those in the European Union—that they will be subject to new reciprocal tariff rates starting on that date. Switzerland and the EU have yet to secure formal trade agreements with the U.S., leaving the market sensitive to geopolitical shifts. Within the SMI, Swatch Group led the gainers with a nearly 3% increase. Other notable performers included Adecco, SIG Group, UBS Group, and VAT Group, all of which saw gains between 1.4% and 1.85%. Mid-to-large cap firms such as Partners Group, Julius Baer, and Holcim also posted modest gains ranging from 0.5% to 1.3%. Conversely, the session saw losses in the healthcare and insurance sectors, with Alcon, Zurich Insurance, and Swiss Life Holding declining between 0.4% and 1%. The overall market behavior suggests a cautious approach as the August 1 deadline approaches.