Swiss Current Account Surplus Smallest in Over 1-1/2-Years đ
Switzerland's current account surplus narrowed significantly in Q3 2024 due to a shrinking goods surplus, widening services deficit, and increased primary and secondary income shortfalls.
The narrowing of Switzerland's current account surplus, driven by a weaker trade balance and higher income outflows, suggests a potential slowdown in the country's economic performance. This could have a moderate negative impact on the portfolio, as it includes exposure to the European and Swiss markets through the S&P 500, European market, and CAC 40 positions.
Swiss Trade Surplus Narrows in November đ
Switzerland's trade surplus narrowed in November 2024 due to a significant drop in exports, particularly in chemical, pharmaceutical, and machinery products, while imports also declined but at a softer pace.
The article indicates a decline in Switzerland's exports, particularly in key industries like chemicals, pharmaceuticals, and machinery, which could negatively impact the performance of the portfolio's long positions in the European market, MSCI World, and some individual stocks like BNP Paribas and Societe Generale. The overall negative impact is moderate, as the portfolio is diversified across different regions and sectors.
Swiss Producer and Import Price Decline Continues âšī¸
Switzerland's producer and import prices decreased by 1.5% year-on-year in November 2024, marking the nineteenth consecutive period of decline, driven by lower costs for pharmaceutical products, petroleum, natural gas, and chemical products.
The decrease in Switzerland's producer and import prices is a neutral development for the given investment portfolio, as it does not have a significant impact on the overall performance. The portfolio is diversified across various sectors and geographies, and the decline in prices for specific products is unlikely to have a material effect on the portfolio's returns.