Swiss stocks rose for the first time in four days amid speculation that policy makers will begin an initiative to coordinate the recapitalization of the European Union’s banks.
Financial shares paced gains, with Credit Suisse Group AG (CSGN) and Zurich Financial Services AG (ZURN) climbing at least 3 percent. Temenos Group AG (TEMN), the banking-software maker, rallied 5.6 percent after UBS AG (UBSN) upgraded the stock. Swatch Group AG (UHR) and Cie. Financiere Richemont SA rose more than 4 percent.
The Swiss Market Index (SMI), a measure of the biggest and most actively traded companies, advanced 1.1 percent to 5,504.99 at the 5:30 p.m. close in Zurich. The gauge has still tumbled 14 percent this year as disappointing European and U.S. economic reports added to concern that the global recovery is faltering. The broader Swiss Performance Index added 1.2 percent today.
U.S. stocks rose yesterday after the Financial Times quoted Olli Rehn, EU commissioner for economic affairs, as saying there’s an “increasingly shared view” that the region needs a coordinated approach to halt the sovereign-debt crisis.
“In the fight against the European debt crisis, it is indispensable to contemplate help for banks and to implement such plans,” Alessandro Fezzi, senior market analyst at LGT Capital Management, said in a phone interview from Pfaeffikon, Switzerland. “It’s a matter of great urgency. So for today, it is definitely a positive factor for the markets.”
Bank Capital Boost
EU officials are working on plans to boost bank capital to contain the euro area’s debt crisis, the International Monetary Fund said, as Moody’s Investors Service warned of deteriorating public finances.
“There is no secret at all that European authorities and the European Commission are all working together on a plan to bring more official capital, more public-sector capital, into the banking sector,” Antonio Borges, the IMF’s European department head, said today in Brussels. “We would recommend that it move to a European approach. More should be done on a cross-border basis.”
In the U.S., a report from ADP Employer Services showed that companies added 91,000 jobs in September, following a revised 89,000 gain August. The median forecast of economists surveyed by Bloomberg News called for an advance of 75,000.
Credit Suisse advanced 4.5 percent to 23.10 Swiss francs as financial shares pushed the SMI higher. Julius Baer, the fifth- largest wealth manager in Switzerland by assets, gained 3.1 percent to 30.52 francs, while Zurich Financial, Switzerland’s largest insurer, jumped 3.5 percent to 187 francs.
Temenos climbed 5.6 percent to 12.30 francs as UBS raised the stock to “buy” from “neutral.”
Swatch, the world’s largest watchmaker, gained 4.7 percent to 316.60 francs and Richemont added 4.1 percent to 42.40 francs.
Holcim Ltd. (HOLN), the world’s second-biggest cement maker, rallied 4.8 percent to 54.20 francs as a gauge of European construction companies was among the best performers of the 19 industry groups in the Stoxx Europe 600 Index. Geberit AG (GEBN), Europe’s largest maker of toilet flushing systems, increased 1.9 percent to 166.60 francs.
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