Swiss Stocks Drop for First Time in Three Days
Swiss stocks dropped, after the benchmark index completed its longest streak of monthly gains in seven years, as Swisscom AG (SCMN) reported worse-than-expected sales and profit for the first quarter.
Swisscom fell 1.3 percent, for the second-biggest drop on the Swiss Market Index. ABB Ltd. (ABBN) slid 1 percent after peer Siemens AG cut its full-year earnings forecast. Transocean Ltd. (RIG), the world’s biggest supplier of offshore rigs, rose 2.1 percent.
The SMI (SMI) dropped 0.4 percent to 7,871.29 at 9:37 a.m.in Zurich, as the market reopened after the Labor Day holiday. The gauge rallied 1.2 percent in April, its eighth consecutive month of gains, as investors bet that central banks will maintain economic stimulus. The broader Swiss Performance Index lost 0.4 percent today.
The European Central Bank will lower its benchmark rate by 25 basis points to a record low of 0.5 percent today, according to 44 of 70 economist estimates compiled by Bloomberg. The central bank will announce its decision at 1:45 p.m. in Bratislava, Slovakia. ECB President Mario Draghi will hold a press conference 45 minutes later.
The volume of shares changing hands in SMI-listed companies today was almost double the average of the past 30 days, according to data compiled by Bloomberg.
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