Swiss stocks advanced after Economic and Monetary Affairs Commissioner Olli Rehn said there is a fairly good chance of averting calamity in Europe.
Adecco SA (ADEN) jumped 5.1 percent after Standard & Poor’s upgraded its credit rating. Swatch Group AG (UHR), the world’s largest watchmaker, and Cie. Financiere Richemont SA, the owner of the Cartier brand, rose after Burberry Group Plc reported sales that beat analysts’ estimates.
The Swiss Market Index (SMI), a measure of the biggest and most actively traded companies, increased 0.9 percent to 5,781.13 in Zurich. The gauge has retreated 14 percent from its high this year on Feb. 18. The broader Swiss Performance Index also rose 0.9 percent today.
“What’s rebounding are cyclical sectors,” said John Plassard, director at Louis Capital Markets in Geneva. “The publication of Burberry earnings, showing growth in China, is important. Burberry is an indicator.”
Rehn, in a pre-recorded speech to a Dublin conference, said consensus on resolving Europe’s debt crisis is in the making. He said economic growth is stalling and Europe is in “a very dangerous place.”
He said “calamity” can be avoided through coordinated action, increasing banks’ capital and enhancing growth.
Slovakia, the only country that hasn’t ratified the revised European Financial Stability Facility, is heading for a second vote after failing to approve it yesterday. The rejection also triggered the fall of Iveta Radicova’s government, as the vote was tied with a no-confidence motion.
Slovak Foreign Minister Mikulas Dzurinda said lawmakers may vote on the bailout fund tomorrow.
Adecco surged 5.1 percent to 42.54 Swiss francs. S&P upgraded the company to BBB/A-2 from BBB/A-3 with a stable outlook, reversing a downgrade in April 2009.
Swatch rallied 3.2 percent to 356.4 francs. Richemont advanced 2.4 percent to 47.48 francs.
Burberry, the U.K.’s largest luxury-goods maker, reported fiscal second-quarter sales that beat analysts’ estimates and dispelled concern over slowing demand. Burberry’s first-half sales in Asia-Pacific rose 52 percent.
Syngenta, the world’s biggest maker of agricultural chemicals, climbed 2.5 percent to 264.9 francs, after gaining 3.4 percent over the past two days. Clariant, the largest maker of printing-ink chemicals, jumped 6.4 percent to 9.76 francs.
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