Swiss Market Index Extends Losses Amid Higher Economic Growth Projections

11:49 AM EDT, 09/30/2026 (MT Newswires) -- Swiss equities remained in negative territory on Wednesday, with the Swiss Market Index closing 0.59% lower, as investors mull over a barrage of economic data releases across key economies. The KOF Swiss Economic Institute increased its real gross domestic product sport-adjusted growth forecast for Switzerland to 1.9% in 2026 from the previous 0.8% projection. Looking ahead, GDP growth is expected to reach 1.7% in both 2027 and 2028. "The Swiss economy also performed better in the first half of 2026 than expected in the summer forecast. The second quarter in particular surprised on the upside. In addition, revisions to the national accounts paint a significantly more favourable picture of past economic developments," the research institute said, but warned that uncertainty remains high. "A further escalation of conflicts in the Middle East could disrupt energy supplies more severely and prolong the energy price shock. Renewed US tariff increases or weaker growth in important export markets could also weigh on the Swiss export economy." Elsewhere, final government data showed that the UK's quarterly GDP grew 0.5% in the second quarter, following a 0.6% rise in the prior three-month period. Meanwhile, provisional data showed that the annual inflation rates in Germany, Italy and France rose in September, compared with the previous month. In corporate news, the US Food and Drug Administration accepted Roche's (RO.SW) new drug application for its investigational fenebrutinib drug for treating relapsing and primary progressive multiple sclerosis, and granted it priority review status. The Swiss drugmaker's stock closed the trading session 0.55% in the red. Santhera Pharmaceuticals (SANN.SW) saw its shares gain 2.79% as it delivered a year-over-year increase in revenue from contracts with customers to 48.3 million francs in the first half from 24 million francs. The specialty pharmaceutical company's net loss narrowed over the period to 21.5 million francs from 38.8 million francs. For full-year 2026, the company still expects its total revenue to come in between 80 million francs and 90 million francs. On the geopolitical front, Iranian officials said the government received an official response from the US regarding its latest proposal aimed at ending the war, the Associated Press and other media outlets reported. The development comes after President Donald Trump previously said that he rejected Iran's proposal.