6 November 2015 – Weekly Swiss and global market roundup.
Brought to you by Investec Switzerland.
The SMI broke through the 9,000 barrier for the first time since August this week, despite weak company news, after the Swiss franc fell sharply against the dollar and pan-European cyclical stocks outperformed on expectations that the European Central Bank (ECB) may increase stimulus efforts.
© Hxdbzxy | Dreamstime.com
Investor sentiment received a boost this week after ECB President, Mario Draghi, said on Thursday that the bank will look again in December to assess whether enough support is being provided to the economy. The continuing relief rally in China also helped encourage stock market inflows. However, the week was not without volatility. Uncertainty around US interest rates continued to weigh on investor appetite after Federal Reserve Chairwoman Janet Yellen said on Wednesday that a December rate rise was still a ‘live possibility’.
The SMI’s positive performance this week came in spite of largely disappointing earnings releases with UBS, Swisscom, Barry Callebaut and Zurich Insurance all releasing negative news. Adecco was the week’s biggest loser, plummeting more than 11%, after the company announced an $805 million write-down and cut its profit-margin target for 2015, blaming weakness in its key German market.
For more stories like this on Switzerland follow us on Facebook and Twitter.
