Swiss stocks closed down after swinging between gains and losses as investors contemplated whether a 9.7 percent slide in equities from this year’s high means forecasts for profits growth are outweighing concern about Europe’s debt crisis.
The Swiss Market Index (SMI) of the biggest and most actively traded companies fell 0.1 percent to 6,291.04 at the close of trading in Zurich, having swung between gains of 0.6 percent and losses of as much as 1 percent. The benchmark measure has tumbled 9.7 percent from its 2010 high on April 15 on concern European nations will struggle to reduce budget deficits without hurting the global economy. The broader Swiss Performance Index (SPI) decreased 0.2 percent to 5,534.94 today.
“Equities are starting to look oversold compared to bonds,” David Shairp, a global strategist at JPMorgan Asset Management in London, wrote in a report today. “The main risks have been the same all year. The pattern of markets has reflected whether too much or too little concern has been factored in regarding these risks. We remain cautious for now.”
Earnings across Europe’s benchmark Stoxx Europe 600 Index companies are projected to grow 56 percent this year, according to Bloomberg data.
UBS AG (UBSN) advanced 0.5 percent to 14.72 Swiss francs and Credit Suisse Group AG (CSGN) advanced 0.8 percent to 43.26 francs. Cie Financiere Richemont SA (CFR), the world’s biggest jewelry maker, climbed 0.6 percent to 38.88 francs. Roche Holdings AG lost 1.2 percent to 160 francs and Julius Baer Group Ltd. (BAER) declined 0.6 percent to 32.55 francs.