Swiss Markets Closes Sharply Higher On Recovery Hopes

(RTTNews) - The Switzerland stock market ended on a strong note on Monday as investors picked up shares from across various sectors after encouraging data from China, Eurozone and the U.K. helped ease concerns about global economic recovery.

Investors also digested data from the Federal Statistical Office that showed consumer prices in Switzerland fell for a sixth month in a row, though at a softer rate.

The benchmark SMI ended stronger by 223.77 points or 2.24% at 10,229.67, after scaling a high of 10,279.80 in late afternoon trades.

On Friday, the SMI ended down 89.44 points or 0.89% at 10,005.90, after scaling a high of 10,199.62.

The mood was so bullish that all the stocks in the SMI benchmark closed higher. ABB, the top gainer, moved up by about 4.1%. Zurich Insurance Group and Sika gained 3.4% and 3.1%, respectively.

SGS, Roche Holding, Credit Suisse, Geberit, Lonza Group, Novartis, Givaudan, Alcon, LafargeHolcim, Adecco and Swiss Life Holding surged up 2 to 3%. UBS Group, Nestle and Swisscom gained 1.85%, 1.4% and 1.3%, respectively.

Among midcap stocks, Vifor Pharma gained nearly 4%. VAT Group, Dorma Kaba Holding, Logitech, Bucher Industries, Georg Fischer, BB Biotech, Sonova and Dufry moved up 2.5 to 3.1%.

OC Oerlikon Corp, Partners Group, Kuehne & Nagel, Clariant, Straumann Holding, Julius Baer, Ems Chemie Holding and AMS also rose sharply.

The Swiss consumer price index decreased 0.9% year-on-year in July, following a 1.3% decline in June, data from the statistical office showed. Economists had expected a 1.1% fall. On a monthly basis, consumer prices fell 0.2% in July. Economists forecast a 0.4% decline.

Prices for clothing and footwear, and communication declined in July, while those for international package holidays and air transport increased.

The core CPI fell 0.4% annually in July and declined 0.2% from the previous month. The EU measure of harmonized index of consumer prices rose 0.1% monthly in July and declined 1.2% from the previous year.

In news from China, a private survey showed factory activity in the country expanded at the fastest pace decade in July, helping ease worries about the Covid-19 pandemic on the global economy. The Caixin manufacturing Purchasing Managers' Index rose to 52.8 in July from 51.2 in June.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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