Swiss market closes significantly lower on weak global signals

BRUSSELS (dpa-AFX) – The Swiss stock market closed sharply lower on Tuesday, in line with markets across Europe, as growth concerns and uncertainty over the likely pace of the Fed’s rate cuts weighed on sentiment.

Investors also digested the latest Swiss economic figures.

The benchmark SMI, which fell to a low of 12,293.90, closed down 103.29 points or 0.83% at 12,348.19.

Shares in Partners Group fell 9.2% after first-half results missed expectations.

VAT Group closed down 3.6% and Julius Baer fell 3.01%. Sandoz Group, Roche Holdings and Roche GS closed down 2 to 2.4%.

UBS Group, ABB, SIG Group, Kuehne + Nagel, Novartis, Straumann Holding, Lonza Group, Holcim and Swatch Group lost 1 to 1.5%.

Givaudan rose 1.52%. Sonova gained 1.32%, while Swiss Life Holding, Swiss Re, Nestle and Schindler Ps rose 0.8% to 1.1%. Lindt & Spruengli and Swisscom posted modest gains.

Switzerland’s economic growth accelerated in the second quarter as initially estimated on the back of strengthening manufacturing and the services sector, data from the State Secretariat for Economic Affairs, or SECO, showed. Gross domestic product grew 0.5% sequentially after expanding 0.3% in the previous two quarters. The rate was in line with the flash estimate.

Consumer price inflation in Switzerland fell more than expected in August, to the lowest level in five months, the Swiss Statistical Office reported.

The consumer price index rose 1.1% year-on-year in August, slower than the 1.3% increase in July. The expected increase was 1.2%. Moreover, this was the lowest inflation since March, when prices rose 1%.

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