Switzerland's Blue-chip Index Deep in Red Amid Rising Inflation

11:50 AM EDT, 10/01/2026 (MT Newswires) -- The Swiss Market Index extended its losses on Thursday, ending the trading session 1.50% lower, amid a slew of economic and private sector data prints that hit the market and a selloff in global bond markets. Data from the Federal Statistical Office showed that the annual inflation rate in Switzerland moved up to 1% in September from 0.8% in August. On a monthly basis, consumer prices were stable, compared with the prior 0.4% rise. "The stability of the index compared with the previous month was the result of contrasting trends that offset one another overall. Prices for heating oil, petrol and diesel increased. In contrast, prices for international package holidays, car rentals and car sharing decreased, as did those for hotels and parahotel accommodation," the FSO said. Meanwhile, the country's manufacturing PMI declined to 55.3 in September from 57.1 in the previous month, marking the seventh straight month the index came in above the growth threshold of 50, according to data from procure.ch and UBS. On the retail front, government data showed that the seasonally adjusted retail sales in Switzerland edged up 0.4% month over month in real terms in August, following a 0.1% increase in July. Over to corporates, UBS Group (UBSG.SW) plans to continue operating as a global bank from Switzerland, it said in an emailed statement to MT Newswires. The response follows an open letter from a top-20 investor, US asset manager Artisan Partners, calling on the bank to relocate after Switzerland's upper house of parliament voted in favor of the proposed tougher capital requirements for UBS. "UBS will protect the interests of its shareholders by continuing to contribute facts and analysis to support informed decision-making and advocating for regulation that is truly targeted, proportionate and internationally aligned, and addresses the root causes of the Credit Suisse crisis," according to the Swiss banking group. The stock was down 3.05%. Zurich Insurance Group's (ZURN.SW) takeover of British peer Beazley through a court-sanctioned scheme of arrangement took effect on Thursday, after a copy of the court order was delivered to the Registrar of Companies. Beazley shares will be delisted from the London bourse on Friday. Zurich's shares closed the session 0.60% in the red.