The Swiss Stock Market Dropped On Weak U.S. Retail Sales Data

(RTTNews) - The Swiss stock market finished to the downside Wednesday, following a volatile trading session. The market was under pressure in early trade, but recovered after the European Central Bank won a crucial legal backing from the top EU court. The ruling fueled speculation that the ECB is likely to announced further stimulus measures at its January 22 meeting.

The market then reversed sharply in the afternoon, following the release of some weaker than expected U.S. economic data. U.S. retail sales fell by much more than anticipated in the month of December, dropping by 0.9 percent. Economists had expected sales to edge down by just 0.1 percent.

Investors will be watching for the release of the U.S. Beige book report later today, for any clues it may contain regarding the Federal Reserve's monetary policy.

The Swiss Market Index declined by 0.94 percent Wednesday and finished at 9,198.20. The Swiss Leader Index fell by 1.18 percent and the Swiss Performance Index lost 0.89 percent.

Bank stocks turned in a weak performance, after the disappointing earnings report from U.S. bank JP Morgan Chase. Credit Suisse fell by 2.4 percent and UBS dropped by 2.7 percent. Julius Baer also declined by 1.6 percent.

The index heavyweights all finished with modest losses. Novartis decreased by 0.4 percent and Roche lost 0.7 percent. Nestle also declined by 0.3 percent. Defensive stock Swisscom also dropped by 0.9 percent. The company's competitor, Sunrise, announced its plans for an initial public offering in the first half of 2015.

Transocean was the largest decliner Wednesday, falling by 4.6 percent. The stock has been under pressure due to the recent drop in oil prices. Cyclical stocks also turned in a weak performance today. ABB dropped by 2.6 percent and Adecco lost 2.0 percent. Richemont also ended the session with a loss of 2.6 percent.