Swiss market news

9 September 2016 -Â Swiss and global market roundup.

Brought to you by Investec Switzerland.

The Swiss Market Index, along with other European markets, fluctuated this week as central bank decisions dominated the landscape.

Â© Jorg Hackemann | Dreamstime.com

Equity markets advanced at the beginning of the week as chances of the Federal Reserve raising US interest rates later this month declined after a surprisingly weak report on the US service-sector earlier this week. The report followed data last week that showed cooling job growth in August and an unexpected pullback in monthly manufacturing activity.

On Thursday stocks declined from near record levels, bond yields rose and the euro strengthened afterÂ Mario Draghi said European Central Bank policy makers didnâ€™t discuss an extension to their quantitative easing program although the governing council did say they expect to keep the key ECB interest rates at present lows for an extended period of time.

In Switzerland a report from the State Secretariat for Economic Affairs showed that economic momentum accelerated in the second quarter, hitting its fastest pace since 2014. Gross domestic product rose 0.6% in the three months through June after gaining a revised 0.3% in the prior quarter. According to the report, contributions to growth came from foreign trade and government consumption while household spending stagnated and investment in construction and equipment declined.

In company news, Zurich Insurance is amongst the SMIâ€™s top performers this week after a broker stated that the company is well positioned to dominate the sustained period of very low interest rates in Europe. In other news, Syngenta Chief Executive OfficerÂ Erik Fyrwald continued a management reshuffle at the Swiss agrochemicals maker ahead of a planned takeover byÂ China National Chemical Corp.Â The company announced two more executive changes coming just a day after the departure of the top finance chief.

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16 October 2015 – Weekly Swiss and global market roundup.

Brought to you by Investec Switzerland.

Swiss financial market news

The Swiss Market Index suffered minor losses towards the end of this week, modestly underperforming global stocks as investors moved into more cyclical, US and emerging markets equities.

A Federal Reserve report released this week showed that the US economy grew only modestly from mid-August to early October, with little inflation pressure as a strong dollar weighed on manufacturing and tourism. In China, factory-gate prices showed their biggest slump since the global financial crisis, underscoring the threat that weakness in the worldâ€™s second-largest economy poses to efforts to fight deflation.

The run of weaker-than-expected economic data sent the odds of a US interest rate increase by the end of this year to record lows and encouraged expectations that China may attempt new stimulus measures to reignite its slowing economy.

Global & Swiss Economic News

US economy expanded only modestly since mid-August
The US economy grew modestly with little inflation pressure from mid-August to early October as a strong dollar weighed on manufacturing and tourism, a Federal Reserve report showed. Six of the 12 Fed districts called the expansion â€œmodest,â€ while three reported â€œmoderateâ€ growth, according to the Beige Book released Wednesday in Washington. ByÂ Jeanna Smialek (Bloomberg). Read more.

Lagarde: China not all â€œdoom and gloomâ€
According to the BBC, the head of the International Monetary Fund, Christine Lagarde, has said the outlook for China’s economy is not all “doom and gloom”. After double-digit growth for decades, China’s economy slowed to 7.4% last year. The government has said it expected growth to slow further to about 7% this year. Read more.

Geneva bank jobs fall to lowest since crisis
Banking jobs in Geneva slipped to the lowest level since the 2008 financial crisis amid regulatory pressures, tax scrutiny and consolidation in the Swiss finance industry, according to lobby group Geneva Financial Center. By Giles Broom (Bloomberg). Read more.

Company news

Nestle cuts 2015 forecast
Nestle SA said it will fall short of its long-term growth target for a third consecutive year, highlighting the volatile conditions in emerging markets that have gone from a boon to a burden for consumer-product companies. Read more.

Syngenta says sales steady even as clouds gather over Latin America
Syngenta AG maintained sales levels in the third quarter yetÂ the worldâ€™s largest maker of pesticides flagged â€œchallenging conditionsâ€ in Latin America as a slide in the Brazilian real andÂ weak agricultural markets curb growth. By Alice Baghdjian (Bloomberg). Read more.

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Swiss stocks fluctuate as central bank decisions dominate the landscape

9 September 2016 -Â Swiss and global market roundup.