Swiss stocks fell, with the country’s equity benchmark posting its longest streak of weekly losses since November, as China’s economy slowed more than forecast and concern about the euro-region debt crisis gained.
ABB Ltd. (ABBN), the world’s biggest power-grid supplier, led a drop in shares sensitive to economic growth. Cie. Financiere Richemont SA, the second-largest maker of luxury goods, also retreated. UBS AG (UBSN) and Credit Suisse Group AG (CSGN), the country’s two biggest banks, followed a gauge of European lenders lower.
The Swiss Market Index (SMI) slipped 0.9 percent to 6,072.12 at the close in Zurich. The measure of Switzerland’s biggest and most actively traded companies sank 1.5 percent this week, its fourth straight decline. The gauge has still gained 2.3 percent in 2012 as the euro area sought to contain its debt crisis and as U.S. economic reports surpassed estimates. The broader Swiss Performance Index decreased 0.8 percent today.
“We remain in a cycle that began in 2007, marked by periods of strong rebounds followed closely by market corrections,” Francois Moute, chairman of Neuflize Private Assets in Paris, and Chief Executive Officer Olivia Giscard d’Estaing wrote in a note. “In our opinion, this means it’s best to remain cautious.”
The volume of shares changing hands in the SMI was 8.3 percent higher today than the average of the last 30 days, according to data compiled by Bloomberg.
ECB Bond Program
Swiss stocks extended their decline as European Central Bank Governing Council member Klaas Knot said that officials remain far from reviving their purchases of government bonds.
“I think that we are very far from that situation, the instrument hasn’t been used for some time, but it’s still there, I hope we never have to use it again,” Knot said at an event in Amsterdam today, when asked about the need for the ECB to buy government bonds.
The cost of insuring against a Spanish default jumped to a record as Prime Minister Mariano Rajoy struggles to prevent the nation from becoming the fourth euro-region member to need a bailout. Credit-default swaps on Spain rose 17 basis points to 498 as of 4 p.m. in London, surpassing the previous all-time high closing price of 493, according to CMA.
Growth in China’s economy, the world’s second biggest, slowed last quarter more than forecast to the weakest pace in almost three years. Gross domestic product rose 8.1 percent from a year earlier, the National Bureau of Statistics in Beijing said today. That was a slower rate than the 8.4 percent growth predicted in a Bloomberg News survey.
U.S. Economy
A report today showed that the cost of living in the U.S. increased at a slower pace in March. Consumer-price inflation climbed 0.3 percent, matching the median forecast of economists surveyed by Bloomberg News. The index increased 0.4 percent in February.
2. Swiss stocks fell, with the country’s equity
benchmark posting its longest streak of
weekly losses since November, as China’s
economy slowed more than forecast and
concern about the euro-region debt crisis
gained.
ABB Ltd. (ABBN), the world’s biggest power-
grid supplier, led a drop in shares sensitive to
economic growth. Cie. Financiere Richemont
SA, the second-largest maker of luxury
goods, also retreated. UBS AG
(UBSN) and Credit Suisse Group AG (CSGN),
3. The Swiss Market Index (SMI) slipped
0.9 percent to 6,072.12 at the close in
Zurich. The measure of Switzerland’s
biggest and most actively traded
companies sank 1.5 percent this week,
its fourth straight decline. The gauge
has still gained 2.3 percent in 2012 as
the euro area sought to contain its debt
crisis and as U.S. economic reports
surpassed estimates. The broader
Swiss Performance Index decreased
4. “We remain in a cycle that began in
2007, marked by periods of strong
rebounds followed closely by
market corrections,” Francois
Moute, chairman of Neuflize Private
Assets in Paris, and Chief Executive
Officer Olivia Giscard d’Estaing
wrote in a note. “In our opinion, this
means it’s best to remain cautious.”
5. The volume of shares changing
hands in the SMI was 8.3 percent
higher today than the average of
the last 30 days, according to data
compiled by Bloomberg.
6. ECB Bond Program
Swiss stocks extended their decline as
European Central Bank Governing Council
member Klaas Knot said that officials remain
far from reviving their purchases of government
bonds.
“I think that we are very far from that situation,
the instrument hasn’t been used for some time,
but it’s still there, I hope we never have to use it
again,” Knot said at an event in Amsterdam
today, when asked about the need for the ECB
to buy government bonds.
7. The cost of insuring against a Spanish
default jumped to a record as Prime
Minister Mariano Rajoy struggles to
prevent the nation from becoming the
fourth euro-region member to need a
bailout. Credit-default swaps on Spain
rose 17 basis points to 498 as of 4 p.m.
in London, surpassing the previous all-
time high closing price of 493,
according to CMA.
8. Growth in China’s economy, the world’s
second biggest, slowed last quarter
more than forecast to the weakest pace
in almost three years. Gross domestic
product rose 8.1 percent from a year
earlier, the National Bureau of Statistics
in Beijing said today. That was a slower
rate than the 8.4 percent growth
predicted in a Bloomberg News survey.
9. U.S. Economy
A report today showed that the cost of
living in the U.S. increased at a slower
pace in March. Consumer-price
inflation climbed 0.3 percent, matching
the median forecast of economists
surveyed by Bloomberg News. The
index increased 0.4 percent in
February. A separate release showed
that consumer sentiment fell to 75.7 in
April from 76.2 at the end of last
10. ABB lost 1.8 percent to 17.89 Swiss
francs. Holcim Ltd. (HOLN), the world’s
second-largest cement maker, slid 2.3
percent to 56.25 francs.
Richemont, which generated 48 percent of its
sales from Asia in its last financial year,
decreased 2.3 percent to 55.60
francs. Swatch Group AG (UHR), the biggest
maker of Swiss watches, slipped 1.7 percent
to 419.70 francs. The watchmaker made 54
percent of its
11. UBS, Credit Suisse
UBS declined 2.4 percent to 11.52 francs.
Credit Suisse lost 3.8 percent to 23.60 francs.
Bank stocks retreated 3.1 percent for the
biggest drop among the 19 industry groups in
the Stoxx Europe 600 Index. (SXXP)
Flughafen Zuerich AG (FHZN), operator of the
Zurich Airport, slid 3.5 percent to 334.25
francs. Credit Suisse is placing 368,270
shares on behalf of CP2 Ltd., terms of the
deal obtained by Bloomberg News show.
12. Newron Pharmaceuticals SpA (NWRN), a
biotechnology company, advanced 4
percent to 3.93 francs. Jefferies Group
Inc. raised its share-price forecast to 4.30
francs from 3 francs.
Aryzta AG (ARYN), the maker of specialty
bakery products, added 2.1 percent to
44.05 francs. The stock was initiated with
an outperform rating at CA Cheuvreux.
