Swiss Market Ends Moderately Lower
(RTTNews) - The Switzerland stock market opened slightly higher Tuesday morning, but slipped into the red within the next few minutes and stayed weak right till the closing bell, as investors largely refrained from making significant purchases.
Worries about the economic impact of the coronavirus pandemic, rising tensions between the U.S. and China, and the continued impasse over a stimulus package in the U.S. rendered the mood cautious.
The benchmark SMI, which advanced to 10,256.92 in opening trades and spent just a few minutes in positive territory, slipped to a low of 10,107.29 around mid afternoon, before eventually settling at 10,162.04 for the day, posting a loss of 67.63 points or 0.66%.
Lonza Group and SGS ended lower by 3.15% and 3.1%, respectively. Givaudan slid 2%, while Sika, Roche Holding, Swiss Re and ABB lost 1 to 1.4%.
Geberit, LafargeHolcim, Adecco, Alcon and Zurich Insurance Group also ended notably lower.
UBS Group shares ended nearly 1% up, while Credit Suisse, Swisscom and Richemont posted modest gains.
In the midcap section, Dufry slid 4.5%. Logitech and Sonova both ended lower by 2.75%, while Partners Group, Bucher Industries, Temenos Group, Vifor Pharma and VAT Group lost 1.4 to 1.8%.
Among the gainers, AMS rallied 5.3%. Lindt & Sp Ps gained nearly 2% and Flughafen Zurich moved up 1.7%. PSP Swiss Property, OC Oerlikon Corp, Lindt & Spruengli and Helvetia gained 1 to 1.4%.
In economic news, Switzerland's consumer sentiment recovered from its slump in April after the relaxation of the measures to contain the coronavirus, according to the survey data from the State Secretariat for Economic Affairs, or SECO.
The consumer confidence index rose to -12 in July from a historic low of -39.3 in the previous quarter. Nonetheless, the reading was well below its long-term average of -5.
Expectations regarding general economic development improved significantly, with the index rising to -16.7 from -78.3. Meanwhile, expectations regarding the development of the labor market remained very negative.
The index measuring households' past financial situation fell to -10 from -7.2, while the indicator for expectations regarding the financial situation brightened considerably. The index came in at -4.1 versus -23.6 in April.
The likelihood of making major purchases left April's low behind but remained well below average, with the relevant sub-index standing at -17.1 points versus -48.0 in the previous quarter.
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