Swiss Stocks Fall as U.S. Payrolls Miss Estimates
Swiss stocks dropped after a report showed U.S. employers hired fewer workers last month than economists had estimated, adding to signs growth is slowing in the world’s largest economy.
Adecco SA (ADEN), the biggest supplier of temporary workers, slid 1.9 percent. Nobel Biocare Holding AG (NOBN) fell 3.3 percent after the second biggest maker of dental implants said its chief financial officer will leave the company. Temenos Group AG (TEMN) dropped 4.3 percent after UBS AG (UBSN) downgraded the shares.
The Swiss Market Index (SMI) lost 0.3 percent to 6,183.67 at the close in Zurich. The equity benchmark posted a weekly gain of 1.9 percent, its fifth straight weekly advance for the longest winning streak in more than three years. The broader Swiss Performance Index dropped 0.4 percent today.
“This job number is not a disaster, but it leaves investors in a limbo between hoping for more stimulus or sustainable growth in the economy,” said Henrik Drusebjerg, who helps oversee $230 billion as senior equity strategist at Nordea Bank AB in Copenhagen. “The U.S. economy is far from as strong as people believed in the first quarter.”
Employers in the U.S. hired fewer workers than forecast in June, showing the labor market is making scant progress toward reducing joblessness.
U.S. payrolls rose 80,000 last month after a 77,000 increase in May, Labor Department figures showed today in Washington. Economists had projected a 100,000 gain, according to the median estimate in a Bloomberg News survey. The unemployment rate held at 8.2 percent. Private employment increased 84,000 in June, the weakest in 10 months.
German industrial output increased 1.6 percent in May, according to a report from the country’s Economy Ministry in Berlin. Economists had forecast production would climb 0.2 percent. The measure dropped 2.1 percent in April.
In Spain, a report from the National Statistics Institute in Madrid showed that industrial production dropped for a ninth month in May, slumping 6.1 percent from a year earlier. The average estimate of seven economists surveyed by Bloomberg had called for an 8.1 percent contraction.
The International Monetary Fund will reduce its estimate for global growth this year, Managing Director Christine Lagarde said today in a speech in Tokyo. “And even that lower projection will depend on the right policy actions being taken,” Lagarde said.
Adecco fell 1.9 percent to 41.61 Swiss francs.
Nobel Biocare declined 3.3 percent to 9.28 francs. CFO Dirk Kirsten will resign by Jan. 31 to pursue opportunities outside the company.
UBS and Credit Suisse, the biggest Swiss lenders, slid 2.9 percent to 10.80 francs and 2.4 percent to 17.38 francs, respectively, as European banks contributed the most to the Stoxx Europe 600 Index’s retreat.
Temenos Group AG, the software company that specializes in applications for the financial industry, lost 4.3 percent to 14.65 francs after UBS cut the shares to hold from buy, meaning that investors should stop buying the stock.
The volume of shares changing hands in companies listed on the SMI was 21 percent lower than the average of the last 30 days, according to data compiled by Bloomberg. The gauge yesterday reached its highest level since April 20.
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