Swiss Equities Retreat as Geopolitical Tensions Weigh on SMI

The Swiss Market Index (SMI) ended Tuesday's session in negative territory, closing at 13,134.14. The benchmark index shed 150.08 points, representing a 1.13% decline, as market participants adopted a risk-off stance throughout the day. The primary catalyst for the downturn was heightened uncertainty regarding a potential ceasefire between the United States and Iran. This geopolitical instability created a cautious atmosphere, leading to broad sell-offs across several high-weight Swiss constituents. Sector losses were led by Lindt & Spruengli, which fell 3.62%, followed by Sandoz Group (-3.1%) and Lonza Group (-2.85%). Other major players, including Nestle, Novartis, and UBS Group, saw declines ranging between 1.4% and 2%. Conversely, Kuehne + Nagel provided a rare bright spot, climbing nearly 1.5%. Adding to the pressure, the Federal Customs Administration reported a contraction in Switzerland's foreign trade surplus for March. The surplus fell to CHF 2.7 billion from February's CHF 4.3 billion, with real exports dropping 3.4% monthly while imports rose 3.1%. For the first quarter of 2026, the total trade surplus stood at CHF 11.1 billion, a slight decrease from the CHF 11.3 billion recorded in the final quarter of 2025. Despite the monthly dip, real exports for the quarter grew by 3.7%, while imports were 1.2% lower.