The Switzerland market ended on a firm note on Tuesday, in line with other markets in Europe, as a slew of stimulus measures announced by the Chinese central bank to revive the world’s second largest economy‘s growth helped underpin sentiment.
The benchmark SMI ended with a gain of 83.50 points or 0.7% at 12,048.85 after moving between 11,985.39 and 12,076.42.
Richemont rallied more than 4%. Swatch Group, SIG Group and Sonova gained 1.6 to 2%.
Swiss Re, Nestle, Julius Baer, Lindt & Spruengli, Straumann Holding, Kuehne +Nagel and ABB ended higher by 1 to 1.4%.
Schindler Ps, UBS Group and VAT Group ended nearly 1% up. Swiss Life Holding, Sika, Roche Holding and SGS posted modest gains.
Novartis, Sandoz Group and Lonza Group closed weak. Holcim and Logitech International ended flat.
China today unleashed a swath of stimulus measures including cuts to its benchmark interest rate to put the economy out of its deflationary funk and back towards the government’s growth target.
The central bank said it would lower borrowing costs and inject more liquidity into the system that would free up more money for lending. Regulators also unveiled plans to support stable development of the stock market.
People’s Bank of China Governor Pan Gongsheng said the bank will reduce the reserve requirement ratio by 50 basis points. He announced that the rate on seven-day reverse repo will be cut by 20 basis points to 1.50 percent and the rate on one-year medium-term lending facility by 30 basis points.
The bank also framed measures aims to support property market. The minimum down payment ratio for second homes will be reduced to 15 percent from 25 percent. The bank intends to cut the existing mortgage rates and bring it closer to the new mortgage rates.
Swiss Market Ends On Firm Note
2024-09-24 17:52:08
