Save for a very brief while around early afternoon, the Switzerland stock market languished in negative territory on Wednesday amid skepticism over Russia’s promise to scale down military operations in Ukraine.
The U.S. has warned that the threat is not over. U.S. President Joe Biden asked whether the Russian announcement on Tuesday was a progress in the talks or an attempt by Moscow to buy time to continue its assault on Ukraine.
A report from the KOF economic institute saying Switzerland’s leading indicator has slumped sharply on war concerns weighed on sentiment.
The benchmark SMI ended with a loss of 81.85 points or 0.66% at 12,243.73, after moving between 12,225.21 and 12,327.95.
ABB ended nearly 4% down. Richemont closed lower by 2.3%, while Credit Suisse, Holcim and Logitech shed 1.9 to 2%.
UBS Group ended 1.5% down, while Geberit and Sika both shed about 1%. Swiss Re and Roche Holding also ended notably lower, while Givaudan advanced 0.71%.
In the Mid Price Index, Dufry, AMS, Lindt & Spruengli, Adecco and Vifor Pharma declined 2.2 to 2.8%.
Ems Chemie Holding, Clariant and Temenos Group ended nearly 2% down. Georg Fischer, OC Oerlikon Corp, Julius Baer, Schindler Ps and Schindler Holding also declined sharply.
Zur Rose rallied 6.7%, extending gains from the previous session. BB Biotech and Barry Callebaut posted modest gains.
Survey data from the KOF economic institute showed the leading indicator of key turning points in Switzerland’s economy dropped sharply in March on concerns over the impact of the war in Ukraine.
The KOF Economic Barometer dropped to 99.7 from 105.3 in February, which was revised from 105.0. Economists had forecast a score of 100.8. The reading fell below it long-term average.
“The recovery from the economic consequences of the pandemic is now overshadowed by the war in Ukraine,” the Zürich-based think tank said. “Overall, a moderate development of the Swiss economy can be expected for the near future.”
The latest decline was mainly due to indicators from the manufacturing sector, followed by those for private consumption, KOF said.
Market Analysis
Swiss Market Closes Lower On Weak Data, Geopolitical Concerns
2022-03-30 17:09:58
