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 world’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 “modest,” while three reported “moderate” growth, according to the Beige Book released Wednesday in Washington. By Jeanna Smialek (Bloomberg). Read more.
Lagarde: China not all “doom and gloom”
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.
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 yet the world’s largest maker of pesticides flagged “challenging conditions” in Latin America as a slide in the Brazilian real and weak agricultural markets curb growth. By Alice Baghdjian (Bloomberg). Read more.