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Swiss Stocks Rise on U.S. Factory, Payrolls Data

Swiss stocks rose, even as the benchmark index completed its first weekly loss this year, as U.S. data showed hiring and manufacturing expanded last month in the world’s largest economy.

Credit Suisse Group AG climbed 1.8 percent after people familiar with the situation said the lender plans to return to the commercial-mortgage bond market. Swatch (UHR) Group AG and Cie. Financiere Richemont SA each advanced at least 3 percent after LVMH Moet Hennessy Louis Vuitton SA reported an increase in full-year profit and predicted a favorable 2013.

The SMI gained 0.4 percent to 7,420.35 at the close in Zurich. The gauge still dropped 0.5 percent this week as the Swiss franc rose against the euro. The broader Swiss Performance Index added 0.5 percent today.

“The markets are just focusing on the glass that’s more than half full, which is good U.S. economy, very strong economy in Asia, and some recovery in Europe in the northern tier,” Andrew Popper, managing director at Beauclerc Advisory Services Ltd., said in a Bloomberg Television interview with Guy Johnson. “The markets are not getting ahead of themselves. Certainly they have gone up significantly, but we are also seeing periods of correction and consolidation, so I’m not worried.”

U.S. Payrolls

A U.S. Labor Department release in Washington showed payrolls rose 157,000 in January following a revised 196,000 advance in the prior month and a 247,000 surge in November. The revisions added a total of 127,000 jobs to the employment count in November and December. The jobless rate increased to 7.9 percent from 7.8 percent.

U.S. manufacturing expanded at a faster pace than expected last month. The Institute of Supply Management’s factory index rose to 53.1 in January from 50.2 the previous month, more than the median forecast for a 50.7 reading, according to a Bloomberg survey. Readings above 50 indicate expansion.

Swiss manufacturing output expanded for the first time in 17 months in January. The procure.ch Purchasing Managers’ Index advanced to 52.5 from a revised 49.2 in December, when adjusted for seasonal swings, Credit Suisse said. That’s the first reading above 50 since August 2011.

In China, an index based on a survey of purchasing managers came in at 50.4 in January as manufacturing output expanded for a fourth month, the National Bureau of Statistics and China Federation of Logistics and Purchasing said. A separate gauge from HSBC Holdings Plc and Markit Economics covering fewer businesses rose to a two-year high of 52.3.

Mortgage Market

Credit Suisse climbed 1.8 percent to 27.37 francs. Switzerland’s second-biggest lender is approaching borrowers with potential terms on new loans that would be packaged into securities and sold off in one deal, according to people familiar with the talks. Drew Benson, a spokesman for Credit Suisse in New York, declined to comment.

Swatch, the world’s biggest maker of Swiss watches, advanced 3.6 percent to 517.50 francs and Richemont added 3 percent to 77.10 francs. LVMH, the world’s largest luxury-goods maker, said profit increased in all its divisions amid growth in the U.S. and Asia.

Autoneum Holding AG (AUTN) jumped 2.6 percent to 55.9 francs after saying 2012 revenue rose 13 percent to 1.91 billion francs ($2.1 billion). The shares have gained 26 percent since the beginning of the year.

Cosmo Pharmaceuticals SpA (COPN) rallied 6.7 percent to 47.50 francs, its highest price since the company’s March 2007 initial public offering. The drugmaker said Dutch regulators approved the sale of its Cortiment treatment for inflammatory bowel disease, reversing an earlier ruling.

Gurit Holding AG gained 1 percent to 417.25 francs. Sales rose 1.8 percent to 351 million francs in 2012 from a year earlier, the company said late yesterday. Gurit said it expects the wind energy market, where the company gets more than half of its revenue from, to recover gradually this year.

The volume of shares changing hands in SMI-listed companies was 2.8 percent higher than the average of the last 30 days, data compiled by Bloomberg showed.

To contact the reporter on this story: Sofia Horta e Costa in London at shortaecosta@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

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