Swiss Stocks Pare Advance in Final Hour of Trading
Swiss stocks pared their gains in the final half hour of European trading as optimism faded that the euro area’s bailout of Spain’s banks will enable the currency zone’s most indebted economies to recover.
Transocean Ltd. rallied as BMO Capital Markets raised its recommendation on the energy industry to overweight.
The SMI (SMI) added less than 0.1 percent to 5,871.35 at the close in Zurich, after earlier jumping as much as 1.5 percent. The gauge of Switzerland’s biggest and most actively traded companies has dropped 7.4 percent since its 2012 high on March 16 amid mounting concern that Greece will have to leave the euro. The Swiss Performance Index rose 0.6 percent today.
“The general problems aren’t solved, but it is of course an important step,” said Alessandro Fezzi, senior market analyst at LGT Capital Management AG in Pfaeffikon, Switzerland. “It is at least some kind of relief in the euro zone.”
The euro area offered Spain as much as 100 billion euros ($125 billion) to rescue its banking system, as the Mediterranean nation became the fourth member of the currency bloc to seek a bailout. The Spanish state’s bank-rescue fund, known as FROB, will receive the money and channel it to lenders.
China’s exports grew last month at more than double the pace economists estimated. Overseas shipments climbed 15.3 percent from a year earlier, the customs bureau said yesterday. that exceeded all 29 estimates in a Bloomberg News survey.
Transocean advanced 1.1 percent to 40.30 Swiss francs. BMO raised its recommendation on the energy sector to overweight, the equivalent of buy. The brokerage predicted that oil prices, retail sales at gas stations and petroleum exports will all grow.
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