18 September 2015
Brought to you by Investec Switzerland.
Swiss markets up on week but fell back Friday
The Swiss Market Index (SMI) tracked global markets higher this week but fell in early trading on Friday as investor’s reacted to news from global central banks on rate changes. On Thursday, the Swiss National Bank left its benchmark interest rate unchanged and said it will remain active in the currency market if necessary to weaken the “significantly overvalued” Swiss franc. At the same time, the Swiss government released a largely gloomy assessment of the economy, stating that growth will stay below its potential this year and next.
Fed sits loose
This week’s most early awaited news came on Thursday evening when the Federal Reserve announced that rates in the United States would remain at record lows until at least December. According to the Fed’s statement, the decision to postpone the first rate hike in nearly a decade came on fears that “recent global economic and financial developments may restrain economic activity”.