ZURICH (Dow Jones) — The Swiss stock market closed on Monday almost unchanged. Friday’s strong US labor market report, which fueled concerns about a rigid interest rate policy by the Federal Reserve, still slowed things down a bit. Unless the labor market cools down, wage pressure is unlikely to abate and the danger of a wage-price spiral will remain. In the run-up to the interest rate decision next week, investors are likely to keep a low profile, it said.
New news from China read mixed: The Caixin purchasing managers’ index for the service sector slipped even deeper into the area indicating contraction in November – mainly because of Beijing’s strict Covid-19 policy. On the other hand, further easing measures were introduced in major Chinese cities over the weekend following the recent protests. The Chinese stock exchanges reacted to this with significant gains. The revisions of the purchasing manager indices for Europe and various individual countries did not trigger any notable price movements.
The SMI lost 3 points to 11,195. In the 20 SMI stocks, there were 14 price losers and 6 price winners. 97.33 (previously: 107.19) million shares were traded.
Credit Suisse (CS) was up 2.8 percent. According to informants, the Saudi Crown Prince Mohammed bin Salman and a US financial investor are among the investors who want to put money into the new CS First Boston unit. Mohammed bin Salman is considering a cash injection of around $ 500 million. UBS (+1.7%) also rose.
ABB fell slightly (-0.4%) after the US industrial conglomerate paid $327 million to settle a corruption scandal in South Africa. In the long term, however, this should calm things down because the risk of lawsuits with the US public prosecutor’s office and the SEC is off the table. In addition, ABB had already set aside this sum.
Novartis announced the success of a study on its drug Pluvicto. The share rose by 2 percent. The titles of the competitor Roche gained 0.4 percent.
Swisscom suffered from an analysis by Deutsche Bank, which downgraded the value to “Sell” from “Hold”. The titles became cheaper by 0.8 percent.
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(END) Dow Jones Newswires
December 05, 2022 11:42 ET (16:42 GMT)
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