Swiss Investor Sentiment Worsens Amid Geopolitical Tensions

Swiss investor sentiment improved markedly in February 2026, with the index climbing to 9.8 from -4.7 in January, when it had fallen to a three-month low. The latest reading marks the second-highest level since January last year, as market participants increasingly expect the Swiss National Bank (SNB) to maintain its policy rate at 0% throughout 2026. However, assessments of the current situation were less upbeat. The current conditions index slipped to -2.5 in February from 0.0 in January.

Swiss investor sentiment declined sharply in January 2026, with the sentiment index falling 10.9 points to -4.7, its lowest reading since October. The drop was driven by escalating tensions between the EU and the US over Greenland, raising concerns about higher tariffs on some European countries. The current conditions index also fell to 0.0 from 16.6 in December 2025. The survey highlighted a marked deterioration in US economic expectations, with two-thirds of analysts anticipating a worsening economic outlook.

The Swiss investors’ sentiment index fell to 6.2 in December 2025 from a ten-month high of 12.2 in November, according to data from UBS and CFA Society Switzerland. Meanwhile, the current conditions index turned sharply positive, rising to 16.6 from -4.9 in November. According to UBS, analysts have become more optimistic about Switzerland’s long-term economic prospects since September, with the five-year growth forecast reaching a peak not seen since the end of 2024. The survey further indicates sustained Swiss franc strength, as none of the respondents expect it to depreciate against the US dollar, a first since the question was introduced in December 2007.