(RTTNews) – The Switzerland stock market started off on a cautious note Tuesday morning, but kept edging higher and higher as the day progressed to eventually end the session on a firm note.
Upbeat industrial production and retail sales data from China, and expectations that global central banks will continue to keep interest rates at low levels to boost economic recovery rendered the mood positive.
The U.S. Federal Reserve will be announcing its monetary policy tomorrow, while the Bank of Japan and Bank of England are scheduled to come out with their policy statements on Thursday.
The benchmark SMI, which pared some gains in the closing minutes of the session, ended at 10,520.00, up 62.57 points or 0.6% from previous close, extending gains to a third successive day. The index, which edged down slightly at the start, hit a high of 10,562.02 in late afternoon trades.
Alcon, Roche Holding and Novartis gained 1.4 to 1.7%. SGS, Lonza Group, Givaudan and Adecco ended higher by 1 to 1.3%.
Sika gained nearly 1%, while Geberit, Swatch Group and Zurich Insurance Group shares advanced 0.4 to 0.75%.
Bank stocks Credit Suisse and UBS Group tumbled 2.75% and 2%, respectively, drifting lower after strong gains in the previous session. Julius Baer lost around 1%.
UBS Group and Credit Suisse Group are reportedly exploring possibilities of a merger. The merger of the two banks, if it takes place, could result in the creation of one of the largest banks in Europe.
In the midcap section, Vifor Pharma gained nearly 3.5%. Straumann Holding, Sonova, VAT Group and Swiss Prime Site ended higher by 1 to 1.2%.
On the other hand, Helvetia declined 2.4% and Temenos Group slid nearly 2%. Dufry ended lower by 1.3%.
In economic news, a report from the Federal Statistical Office showed Switzerland’s producer and import prices declined in August, falling 3.5% year-on-year.
The producer price index fell 2.2% annually in August and import prices decreased 6.1%.
On a monthly basis, producer and import prices fell 0.4% in August.
Domestic sale prices fell 0.8% yearly in August and rose 0.1% a month ago.
European markets closed higher on Tuesday, reacting to upbeat data on China industrial production and retail sales, and a survey showing a notable improvement in Germany’s economic sentiment.
Among the major indices, the U.K.’s FTSE 100 surged up 1.32%, Germany’s DAX edged up 0.18% and France’s CAC 40 advanced 0.32%. The pan European Stoxx 600 moved up 0.66%.
A Global Asset Management Seoul Korea Magazine