Swiss stocks fell, in line with declines elsewhere in Europe, as the Bank of Japan refrained from expanding stimulus and a German court began hearings on the European Central Bank’s bond-buying plan.
Cie. Financiere Richemont SA, the owner of the Cartier brand, posted the biggest drop on the benchmark Swiss Market Index. (SMI) UBS AG (UBSN) and Credit Suisse Group AG, Switzerland’s two largest banks, also retreated.
The SMI slid 0.7 percent to 7,735.98 at 9:29 a.m. in Zurich. The equity benchmark has pared this year’s gains to 13 percent, from as much as 23 percent on May 22, as concern grew that the Federal Reserve may reduce the size of its bond purchases. The broader Swiss Performance Index (SPI) lost 0.6 percent today.
Bank of Japan policy makers today refrained from expanding their tools to address bond-market volatility, sticking with an April plan to double the monetary base as they seek to rekindle inflation and stoke growth. Germany’s constitutional court will consider today a case against the ECB’s Outright Monetary Transactions program.
Richemont fell 1.5 percent to 83.30 Swiss francs. UBS dropped 1.2 percent to 16.66 francs. Credit Suisse lost 0.5 percent to 26.98 francs.
Nobel Biocare Holding AG (NOBN) advanced 0.8 percent to 12.60 francs. The maker of dental prosthetics said it expects to grow at least in line with market in the next three to five years, assuming demand improves after this year “to modest mid single-digit growth.” The company added in a statement that it forecasts profit margins to widen between 50 basis points and 100 points a year at constant exchange rates in the period.
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