BRUSSELS (dpa-AFX) - Switzerland's equity index SMI fell sharply on Tuesday, as escalating tensions in the Middle East continued to rattle global financial markets.
U.S. President Donald Trump suggested the war may last four to five weeks but could 'go far longer than that,' raising concerns a prolonged conflict could lead to a substantial spike in inflation.
A prolonged conflict in the Middle East and a persistent fall in oil and gas supplies from the region could cause a 'substantial spike' in inflation and a 'sharp drop in output' in the euro zone, ECB chief economist Philip Lane has warned in an interview with the Financial Times.
The index, which stayed in negative territory right through the day's trading, settled with a loss of 429.17 points or 3.1% at 13,404.93, off the session's low of 13,348.37.
Zurich Insurance fell 6.7%. ABB, Helvetia Baloise Holding, Swiss Life Holding, Richemont and Swiss Re ended lower by 4%-5%.
Sika, UBS Group, Givaudan, Sandoz Group, Geberit, SGS, Holcim, Amrize, Lindt & Spruengli, Novartis, Schindler Ps, Partners Group, Galderma Group, Julius Baer, Nestle, Lonza Group, Alcon and Roche Holding lost 2%-4%.
Kuehne + Nagel bucked the trend and posted a modest gain of about 0.5%.
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