Swiss Market Notably Rallies on Robust Economic Signals

Switzerland’s financial markets demonstrated notable strength on Monday, with the benchmark SMI index climbing 220.85 points, or 1.67%, to close at 13,409.11—marking the session’s peak. The rally was notably driven by a combination of upbeat retail sales figures and improved manufacturing activity indicators, signaling renewed economic momentum in the Alpine nation.

Retail Sales Growth Accelerates to Record Pace

A comprehensive report from Switzerland’s Federal Statistical Office revealed notably strong consumer spending in December. Retail sales surged 1% month-on-month in real terms, marking a sharp turnaround from November’s 0.1% decline. The year-over-year comparison proved even more impressive, with December sales climbing to 2.9%, significantly outpacing November’s 1.7% and exceeding economist expectations of 2.5%.

The breakdown of sales categories told an interesting story. Food, beverages, and tobacco purchases jumped 1.3%, while non-food retail edged down 0.4%. Most notably, online commerce rebounded dramatically, with digital sales posting a 10.8% increase after plummeting 13.1% the previous month—suggesting a powerful recovery in e-commerce momentum heading into the new year.

Manufacturing Sector Eases as PMI Improves

On the industrial front, the procure.ch and UBS manufacturing PMI registered 48.8 in January 2026, up from a revised 46.4 in December. Though the index remained in contraction territory, the upward trajectory signaled notable relief in manufacturing pressures across Switzerland’s industrial landscape, indicating the sector’s resilience amid economic headwinds.

Blue-Chip Stocks Rally on Positive Sentiment

The positive economic backdrop propelled Switzerland’s flagship companies to notably strong performances. Among the biggest gainers, Nestle advanced 2.85%, while Richemont, Logitech International, Novartis, Lindt & Sprüngli, Galderma, Schindler Holding, and UBS Group each climbed 2% to 2.5%. Secondary gainers including Helvetia Group, Holcim, Zurich Insurance, SGS, ABB, Sika, Julius Baer, Swiss Life Holding, and Roche Holding rose between 1% and 2%.

Downside pressure remained limited, with Sonova declining 1.1%, while Alcon, VAT Group, Givaudan, and Partners Group experienced modest losses of 0.3% to 0.7%. The broad-based strength notably reflected investor confidence in Switzerland’s economic trajectory as strengthening consumer demand and easing industrial pressure converge to support market sentiment.