The Switzerland market extended its winning streak to an eleventh consecutive session, as stocks moved higher on Tuesday amid rising optimism about the economy after the government raised the country’s growth forecast for the year.
The benchmark SMI ended with a gain of 55.56 points or 0.47% at 11,921.97 after hitting a new all-time high at 11,963.60.
Swiss Life Holding, Givaudan, ABB, Nestle, Zurich Insurance Group, Swiss Re, Credit Suisse and Novartis gained 0.5 to 1%.
In the Swiss Mid Price index, VAT Group gained nearly 2.5% and Lindt & Spruengli climbed 2.25%. Helvetia, Clariant, Ems Chemie Holding, Sonova and Lindt & Spruengli N gained 1.3 to 2%.
OC Oerlikon Corp, Temenos Group, AMS, Adecco, Swiss Prime Site, PSP Swiss Property and BB Biotech shed 0.75 to 1.3%.
The Swiss economy is expected to grow faster than previously estimated this year as the easing of coronavirus measures triggered a swift recovery, the State Secretariat for Economic Affairs, or SECO, said in its quarterly economic forecast.
The expert group of the federal government forecast gross domestic product to grow 3.6% this year instead of 3% growth estimated previously. The projection for 2022 was retained at 3.3%.
GDP is expected to reach well above the pre-crisis level in the second half of 2021.
Companies are projected to raise their investments and expand their workforces. Short-time working is likely to be reduced gradually and unemployment should fall further, the agency said.
The unemployment rate is expected to come at an annual average of 3.1% for 2021 versus 3.3% projected in March. The rate is seen falling to 2.8% next year.
The report also said that consumer prices may rise 0.4% this year, unchanged from the previous estimate. IT raised the projection for 2022 to 0.5% from 0.4%.
Market Analysis
Swiss Market Rises For 11th Straight Day
2021-06-15 18:05:11
