Swiss Stocks Retreat; Swiss Re, Nestle SA Lead Declining Shares in Zurich

Swiss stocks fell, paring this week’s gains, after a report showing lower-than-estimated private job creation in the U.S. stoked concern that the global economy is slowing.

Adecco SA, the world’s biggest supplier of temporary workers, and Swiss Reinsurance Co., the second-largest reinsurer, led the retreat.

The Swiss Market Index declined 0.8 percent to 6,321.36 at the 5:30 p.m. close in Zurich, for a 1.9 percent gain this week. The measure earlier gained as much as 0.6 percent. The SMI has rebounded 6.4 percent from this year’s low on July 5, as investors speculated on a continued increase in corporate profits even as the economic recovery slows down. The broader Swiss Performance Index fell 0.8 percent to 5,596.51 today.

“Equity markets in the third quarter are torn between positive news from the companies’ side and mixed-to-slightly- negative news on the macro side,” said Tammo Greetfeld, Munich- based strategist at UniCredit SpA. “The impact of weakening leading indicators will have the dominating impact on equity markets. The labor-market number is just one piece of news within this broader context.”

U.S. private payrolls that exclude government agencies rose by 71,000 in July, less than the 90,000 forecast in a Bloomberg survey of economists, Labor Department figures in Washington showed today. Payrolls grew by 31,000 in June, less than the 83,000 previously reported.

Adecco fell 3.7 percent to 55.50 Swiss francs, the stock’s first decline in six days.

Swiss Re Drops

Swiss Re dropped 4.3 percent to 45.47 francs. JPMorgan Chase & Co. and Goldman Sachs Group Inc. cut the shares to “neutral,” while Helvea downgraded its rating to “accumulate” from “buy.” Analysts cited Swiss Re’s weakening profitability a day after the company reported quarterly earnings.

Nestle SA, the world’s largest food company, dropped 1 percent to 50.55 francs, after wheat reached a 23-month high following Russia’s ban on grain exports.

Syngenta AG, the world’s biggest maker of agricultural chemicals, climbed 3.1 percent to 250.90 francs because the price of wheat rallied.

To contact the reporter on this story: Alexis Xydias at axydias@bloomberg.net

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