BRUSSELS (dpa-AFX) - The Switzerland stock market ended sharply lower on Monday amid fading hopes for a U.S.-Iran peace deal after Tehran accused US of violating ceasefire.
Iran's state-affiliated news outlet Tasnim said Tehran will halt peace talks with the U.S. and completely close the Strait of Hormuz in response to Israeli attacks in Lebanon.
Earlier, U.S. Central Command said it conducted 'self-defense strikes' on Iranian radar and command and control sites for drones in Iran over the weekend.
Switzerland's benchmark index SMI stayed in negative territory throughout the day's session and settled at 13,305.40, losing 237.26 points or 1.75%.
Pharma stocks Roche and Novartis ended down by 3.61% and 3.33%, respectively.
Sika, Geberit, VAT Group, Helvetia Baloise Holding and Sandoz Group lost 2.1%-2.8%.
Nestle, Givaudan, Swiss Life Holding, Holcim, Sonova, Gaderma Group, Richemont, Swiss Re, Lindt & Spruengli and Schindler Ps shed 1%-2%.
Logitech International ended with a gain of 2.8%. Kuehne + Nagel and UBS Group gained 1.55% and 1.38%, respectively. Julius Baer moved up 0.3%.
In economic news, Swiss retail sales increased at the quickest pace in four months in April, climbing 1.6% (annually), faster than the 1.3% growth in March, data from the Federal Statistical Office revealed. Sales were expected to rise only by 0.2%. It was the third successive monthly expansion.
On a monthly basis, retail sales rose a seasonally adjusted 0.4% in April versus a 2.5% increase in the prior month.
The Swiss economy expanded less than estimated in the first quarter on subdued domestic demand, data from the State Secretariat for Economic Affairs, or SECO, showed.
Gross domestic product grew 0.4% in the first quarter, which was revised down from the initial estimate of 0.5%. Nonetheless, the rate was faster than the 0.2% expansion seen in the fourth quarter of 2025.
On an unadjusted basis, the economic growth accelerated to 0.7% from 0.2% in the preceding quarter.
Year-on-year, GDP advanced by an adjusted 0.3% after rising 1.1% in the previous quarter.
Earlier, the SECO had downgraded its growth outlook for this year to 1% from 1.1% citing rising uncertainty over the war in the Middle East. Growth was projected to improve to 1.7% in 2027.
The Swiss National Bank had forecast growth of around 1% for 2026 as a whole, to be followed by about 1.5% expansion in 2027.
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