Swiss Market Index Concludes Week Upbeat; Swiss Re Shares Drop

11:49 AM EST, 12/05/2025 (MT Newswires) -- Swiss equities extended their gains on Friday, with the Swiss Market Index concluding the trading week 0.33% higher. Switzerland's Federal Council adopted the draft negotiating mandate for a trade agreement with the US under which the tariff rate imposed on Switzerland will be reduced to 15% from 39%. The council will now consult with the parliamentary foreign affairs committees and the cantons on the draft. Meanwhile, the country's foreign currency reserves increased to 727.39 billion francs in November from the revised 724.91 billion francs in October, according to data from the Swiss National Bank (SNBN.SW). Across the pond in the US, the annual PCE price index edged up to 2.8% year over year in September from 2.7% in August, according to data from the country's Bureau of Economic Analysis. The annual core PCE inflation rate, on the other hand, declined to 2.8% from the previous month's 2.9%. In corporate news, Swiss Re (SREN.SW) saw its shares slip 6.53% after unveiling its financial objectives for 2026 as part of a refreshed strategy, including a group net income target of $4.5 billion, which fell short of the Visible Alpha consensus of $4.7 billion and RBC Capital Markets' $4.6 billion forecast. The reinsurance group also plans to introduce a "sustainable" annual share buyback program of $500 million from 2026, dependent on the company reaching its full-year 2025 net income target of over $4.4 billion. "With a strong starting [Swiss Solvency Test ratio] of 268% at 1 October, the maths behind the size of the new buyback is not immediately obvious ... Note we and consensus had $1bn buyback going forward," analysts at RBC said. "Our expectations shifted after disappointing Q3 results, with a focus on P&C top-line outlook after worsening trends and reserving issues in Life & Health, even after large charges taken in 2024/25. A combination of poorer historical performance and worse growth outlook than its German peers (Hannover Re and Munich Re) mean we think Swiss Re deserves to trade at a discount to those peers, with all three currently trading on c.11x FY26E P/E." Galderma Group (GALD.SW) secured the European Union Medical Device Regulation certification for its the regenerative biostimulator Sculptra, expanding the product's clinical use beyond the face, to include the gluteal area, posterior thighs, décolletage and upper arms. The certification is also part of the Swiss dermatology group's medical device regulation transition strategy. The stock closed 0.55% in the red.