Swiss Stocks Reverse Gains; UBS, Credit Suisse Shares Decline in Zurich

Swiss stocks reversed previous gains as a decline in financial shares offset a gain in Adecco SA before a report that may show American employers added jobs in May for a fifth consecutive month.

UBS AG lost 1.6 percent and Credit Suisse Group AG fell 1.1 percent. Adecco increased 1.4 percent. Coltene Holding AG climbed 4.8 percent after Bank Vontobel AG suggested investors buy shares of the Swiss dental product and equipment company. Meyer Burger Technology AG surged 2.4 percent after winning a new order.

The Swiss Market Index, a gauge of the biggest and most actively traded companies, lost 17.13, or 0.3 percent, to 6,401.69 as of 1:24 p.m. in Zurich, after rising as much as 0.7 percent. The SMI, which has gained 1.3 percent this week, is still down 8.1 percent from this year’s high on April 15 amid concern that European nations will have difficulties reducing their budget deficits without harming the economic recovery. The broader Swiss Performance Index retreated 0.1 percent to 5,633.02 today.

“The news flow from Hungary spurred sell orders on bank stocks across Europe,” said Alessandro Valentinis, head of trading at Cassa Lombarda in Milan.

Hungary’s economy is in a “very grave situation” because the previous government manipulated figures and lied about the state of the economy, said Peter Szijjarto, a spokesman for Prime Minister Viktor Orban.

Credit-default swaps on Hungarian government debt rose 14 basis points to 322.5, according to CMA DataVision prices.

Biggest Banks

UBS and Credit Suisse, Switzerland’s biggest banks, fell 1.6 percent to 15.1 francs and 1.1 percent to 44.14 francs, respectively. Julius Baer Group Ltd., a 120-year-old private bank, slipped 1.2 percent to 33.16 francs. Swiss Life Holding AG, the country’s biggest life insurer, retreated 1.6 percent to 121.1 francs.

Adecco, the biggest supplier of temporary workers, gained 1.4 percent to 56.15 francs.

The Labor Department report, due at 8:30 a.m. in Washington, may show U.S. payrolls climbed by 536,000 in May, the most since 1983, according to the median forecast of 82 economists surveyed by Bloomberg. The jobless rate is forecast to fall to 9.8 percent from 9.9 percent the previous month. Survey estimates for the gain in payrolls range from 220,000 to 750,000.

Coltene advanced 4.8 percent to 59.2 francs. Vontobel upgraded the stock to “buy” from “hold.” The brokerage said in a note today that “Coltene is more a value than a growth play with a strong balance sheet, stable single-digit sales growth and EBIT margins in the teens, strong cash generation and a high payout ratio culminating in a dividend yield of above 5 percent.”

Meyer Burger advanced 2.4 percent to 25.9 francs. The maker of industrial cutting equipment won an order worth more than 25 million francs ($21.7 million) with a new customer in China.

APEN AG rose 1.8 percent to 17.05 francs. Christian Wenger has revoked his intention to step down from Apen Ltd.’s board and will stand for re-election at the June 7 annual shareholders meeting, the Swiss investment company said in an e-mailed statement.

To contact the reporter on this story: Francesca Cinelli in Milan at fcinelli@bloomberg.net.

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.