Swiss Stocks Recover as Democrats Flip US Congress

11:54 AM EST, 11/04/2026 (MT Newswires) -- The blue-chip Swiss Market Index staged a recovery on Wednesday, closing 1.90% higher, as Democrats secured majorities in both the House of Representatives and the Senate in the closely watched US midterm elections. "Key sectors of corporate America will be nervous that Democratic control of important oversight committees could bring greater scrutiny. More congressional hearings involving AI and technology business leaders would be a likely outcome, while a strong performance at the ballot box may embolden local Democratic leaders to try to stall unpopular data centre construction in their constituencies. Fossil fuel producers may face similar challenges," according to ING. In economic news back home, Switzerland's private sector saw further improvement in October, with the KOF Business Situation Indicator rising to 24.7 from 22.9 in the previous month. "The business situation varies across the sectors surveyed. The upturn in manufacturing is continuing, with the Business Situation Indicator here rising for the fourth month running. Business is also improving in the wholesale trade, the hospitality sector and the construction industry. It remains unchanged in the retail sector and in other services," the KOF Swiss Economic Institute said. "The outlook for the coming six months, however, has deteriorated slightly, having previously improved for three consecutive months. Overall, the upward trend in the Swiss economy remains intact at present." Over to corporates, Barry Callebaut's (BARN.SW) reported net profit stood at 157.7 million francs for fiscal 2026, down from the year-ago 188.4 million francs. The Swiss chocolate and cocoa products manufacturer's revenue fell to 12.19 billion francs from 14.79 billion francs, with sales volume edging down 0.7% over the period. For fiscal 2027, the company expects a 30% increase in recurring profit before tax, in constant currency, with volume growth of between 1% and 3%. "Our FY 2025/26 results demonstrate early progress, including a return to volume growth in the second half of the year, strong free cash flow generation and significant deleveraging. We have also taken decisive action to focus the business on the customers, segments and contracts where we can create the greatest value and build a stronger, more resilient platform for profitable growth. I am particularly encouraged by the double-digit growth in Gourmet in Q4 and the momentum we are building into next year," Chief Executive Officer Hein Schumacher said. At closing, Barry Callebaut shares jumped 8.58%. Meanwhile, a member of the Swiss parliament's lower house is proposing a compromise that could reduce the amount of additional capital UBS Group (UBSG.SW) must hold to back its foreign units, people familiar with the proposal told Bloomberg News. The proposal would reportedly allow the Swiss banking group to use more conservative valuations for its foreign subsidiaries when calculating how much extra common equity tier 1 capital it needs to have, with the matter set to be discussed by the parliament's Economic Affairs and Taxation Committee on Nov. 23 and Nov. 24. UBS shares gained 4.59% at the close.