Swiss Market Index Kicks Off 2026 Downbeat as Nestlé Sheds Amid Infant Formula Recall

11:57 AM EST, 01/05/2026 (MT Newswires) -- Swiss stocks were in the red on the first trading session of 2026 following the New Year and Berchtholdstag holidays, with the Swiss Market Index down 0.15% on Monday's close. Switzerland's manufacturing PMI dropped to 45.8 in December 2025 from the previous month's 49.7, data from procure.ch and UBS showed. Meanwhile, provisional government data showed that seasonally adjusted retail sales in the country increased 2.3% year over year in November 2025, compared with the revised 2.2% rise in the prior month. On the geopolitical front, the Swiss Federal Council froze with immediate effect any assets in the country held by deposed Venezuelan President Nicolás Maduro, who was seized by US special forces in Caracas over the weekend and taken to New York. Switzerland also called for "de-escalation, restraint and compliance with international law" and a peaceful solution to the volatile situation, along with the European Union and other global leaders. Over to corporates, Nestlé (NESN.SW) initiated a precautionary recall of certain batches of its infant formula products in Austria, Italy and several other European countries due to the potential presence of a toxin called cereulide. Products affected include Beba, Alfamino and Nan. The Swiss food and beverage giant's stock shed 2.92% at closing. Meanwhile, Bernstein reaffirmed its outperform rating on Compagnie Financière Richemont (CFR.SW) and price target of 200 francs, naming the group its top preference as part of the research firm's Global Luxury Goods: Outlook 2026 report. "There is lots to like here: a) continuing better jewellery momentum relative to other product categories, as jewellery appears better value for money in the eyes of consumers; b) a strong leading position in jewellery, with Cartier, Van Cleef & Arpels, Buccellati and Vhernier; c) a "succession ready" organisation and leadership structure; d) improved capital allocation discipline after the YNAP divestiture," Bernstein wrote. Richemont closed the session 0.52% higher.