The Swiss Stock Market Dropped After U.S. Employment Report Disappoints

(RTTNews) - The Swiss stock market ended Friday's session in negative territory and finished negative for the week, following 3 straight weeks of gains. The market was in positive territory in early trade Friday, but turned lower following the release of the weaker than expected U.S. employment report for May.

U.S. non-farm payroll employment edged up by just 38,000 jobs in May compared to economist estimates for an increase of about 158,000 jobs. Following the weaker than expected job growth, many investors now believe a June interest rate hike by the Federal Reserve is off the table. However, a July increase is believed to still be a possibility.

The Swiss Market Index decreased 0.70 percent Friday and finished at 8,148.40. The SMI ended the trading week with an overall loss of 1.7 percent. The Swiss Leader Index dropped 0.76 percent Friday and the Swiss Performance Index lost 0.57 percent.

The bank stocks were the biggest losers of the session, due to the shift of opinion on the outlook for a Fed rate increase. UBS sank 3.4 percent and Credit Suisse declined 2.5 percent. Julius Baer dropped 1.5 percent and Zurich Insurance lost 1.1 percent.

LafargeHolcim was another notable loser, falling 2.1 percent. Adecco weakened by 1.0 percent and Sonova surrendered 0.9 percent.

The index heavyweights all finished in the red Friday. Novartis decreased 0.9 percent and Roche fell 0.7 percent. Nestle ended the day with a loss of 0.1 percent.

Swisscom was the top gainer of the session, with an increase of 1.5 percent. Investors will be watching for the results of the vote on the Public Service Initiative this weekend, a proposal to turn state-owned companies into non-profit organizations. Initially, most support appeared to be on the side of a "Yes" vote, but more recently appears to have shifted towards a "No" vote.

Aryzta gained 1.0 percent and Richemont added 0.9 percent.