Swiss Market Ends Weak On Virus Concerns, Growth Worries

(RTTNews) - Save for a few minutes around mid-morning, the Switzerland stock market was down in negative territory on Tuesday as worries about surging coronavirus cases and a report forecasting a slower economic recovery offset positive news on the vaccine front.

The benchmark SMI, which advanced to 10,391.24 after a weak start, fell to a low of 10,319.42 later on in the session before finally settling at 10,341.18 with a loss of 31.85 points or 0.18%.

Lonza Group shares ended more than 2% down. Novartis declined nearly 2%, while Swisscom and Givaudan ended lower by 1.1% and 1%, respectively.

Among the gainers, Richemont moved up 2.2%. Swatch Group, Partners Group, Credit Suisse and UBS Group gained 1.1 to 1.6%.

In the midcap section, Schindler Ps declined more than 2%. Schindler Holding ended lower by 1.5% and Lindt & Sp Ps lost 1.1%.

On the other hand, AMS gained 4.75%. Dufry ended nearly 3% up, while SIG Combibloc, Georg Fischer, Temenos Group, OC Oerlikon Corp, VAT Group and Adecco gained 1.5 to 2%. Clariant and Cembra Money Bank also ended notably higher.

Data from the Federal Statistical Office showed Swiss producer and import prices fell 2.7% year-on-year in November. The producer price index decreased 1.3% annually in November and import prices decreased 5.3%. On a monthly basis, producer and import prices fell 0.1% in November.

The latest decline was mainly due to a fall in prices of petroleum products and pharmaceutical preparations, the agency said.

Domestic sale prices fell 0.9% yearly in November and declined 0.2% from a month ago.

The Swiss economy is set to shrink less than expected this year, but the recovery next year would be slower than forecast earlier, due to the adverse effect from the second wave of the coronavirus pandemic and lockdown measures, according to the State Secretariat For Economic Affairs, or SECO.

Gross domestic product is set to fall a seasonally and calendar adjusted 3.3% this year, which is slightly less than the 3.8% decline projected in October. Yet, this would be the strongest decrease since 1975.

The growth forecast for next year was lowered to 3% from 3.8%. The Swiss economy is projected to grow 3.1% in 2022.

The unemployment rate is projected to climb to 3.3% next year from 3.2% this year. Thereafter, it is seen easing to 3% in 2022. Consumer prices are forecast to fall 0.7% this year and edge up 0.1% next year. Inflation is projected at 0.3% in the year after.