25 September 2015
Brought to you by Investec Switzerland.
Swiss markets hit by global fears
The Swiss Market Index extended losses this week as concerns that global growth is faltering spurred investors to sell equity assets. In Europe, stocks came under further pressure after automobile giant Volkswagen admitted cheating on US emissions tests.
Fed talks of tightening
Yesterday, Federal Reserve Chair Janet Yellen said she is ready to raise interest rates this year and intends to let the labour market run hot for a time to heal the lingering scars of the worst recession since the Great Depression.
Pressure on drug makers
US presidential hopeful Hilary Clinton’s pledge earlier this week to reduce the price of drugs if elected next year, weighed on Swiss pharma and led to underperformance of the SMI against global markets.
Emerging markets wobble (again)
Emerging markets remained volatile after the first reading on China’s economy in September showed conditions in the manufacturing sector continuing to deteriorate. The continuing weak data suggests a sustained slowdown in economic activity; adding to negative investor sentiment and compounding the current sell off in global risk assets.