Weak US stock markets drag down Swiss market

The Swiss stock market came under significant pressure in early trading on Wednesday. The gloomy mood on Wall Street from the previous day spilled over onto the local stock market. +Get the most important news from Switzerland in your inbox The US stock markets had started September with weak prices the previous day after a public holiday. In particular, a poor ISM index – an important leading indicator for industry – led to losses. In addition, the market is noticeably cautious ahead of the publication of the US labour market report on Friday. This will set the tone for the Fed's interest rate cut expectations. "Many warnings have been ignored and the markets have overshot the mark," said one market observer. The mood is in danger of tipping: it now remains to be seen how the US jobs data turns out and what the Fed's most likely reaction will then be in mid-September. The market is expecting an interest rate cut. The question is how big the move will be. For the time being ...