Swiss Market Index Bounces Back as ECB President's Exit Takes Spotlight

12:50 PM EDT, 10/29/2026 (MT Newswires) -- The blue-chip Swiss Market Index staged a recovery on Thursday, closing 1.21% higher, as investors turned their attention to the latest monetary policy decisions and the European Central Bank chief's early exit. The ECB left its three key interest rates unchanged, as widely expected, noting that underlying inflation is still "broadly stable" thus far as the full effects of the energy shock continue to unfold. Meanwhile, ECB President Christine Lagarde, who was appointed to the post in November 2019 for an eight-year term, announced that she will step down from her post on Feb. 7, 2027. "With still very little knock-on effects from higher energy prices and headline inflation on the rest of the economy, the ECB kept interest rates on hold today at 2.50%. The breaking news, however, came with Christine Lagarde's resignation," research firm ING said. "Currently, the two main contenders for Lagarde's succession are Pablo Hernández de Cos from Spain and Klaas Knot from the Netherlands. Both excellent candidates who would bring a high level of monetary policy expertise to the table." Across the pond, the US Federal Reserve held its key interest rate steady in the 3.75% to 4% range, in line with market forecasts. The country's gross domestic product grew at an annual rate of 3.4% in the third quarter, following a 2.2% growth in the prior three-month period, according to the Bureau of Economic Analysis' advance estimate. Back home, the Swiss Federal Department of Finance conducted an assessment of UBS Group's (UBSG.SW) potential relocation in light of the proposed tighter capital requirements for the bank, a spokesperson for the department told MT Newswires. The relevant authorities believe the Federal Council's proposed measure is effective, targeted, proportionate and manageable for UBS. Shares were up 2.88% at closing. Meanwhile, Avolta (AVOL.SW) delivered a year-over-year increase in third-quarter core turnover to 4 billion francs from 3.79 billion francs. Looking ahead, the Swiss travel retailer reaffirmed its medium-term organic growth target of 5% to 7% per annum. The stock ended the trading day 5.10% in the green. "Our third-quarter performance was encouragingly resilient and demonstrated an improving momentum of the business. Organic growth accelerated in Q3 and remained strong into October. At the same time, the profitability gap versus last year narrowed as new operations ramped up and our initiatives to support profitability and cash generation gained traction, alongside our continued focus on technology, digital and data transformation to further improve the business," Chief Executive Officer Xavier Rossinyol said, noting that the performance reinforces the company's confidence in its medium-term goals.