Stocks in Switzerland were little changed as investors watched trends in bond yields and corporate takeovers across Europe.
Givaudan SA, the world’s largest maker of flavorings, gained 1.2 percent. Newron Pharmaceuticals SpA (NWRN) jumped to a nine-month high as the Italian developer of an experimental treatment for Parkinson’s disease said it will detail more benefits of its safinamide drug. Georg Fischer AG advanced 2.3 percent. Nobel Biocare Holding AG (NOBN) lost 3.2 percent after UBS AG added the shares to its “least-preferred” list.
The Swiss Market Index (SMI) slipped less than 0.1 percent to 7,671.61 at 10:01 a.m. in Zurich. The gauge retreated yesterday as the Bank of Japan refrained from expanding stimulus and Treasuries sank amid speculation the Federal Reserve will trim bond purchases. The equity benchmark has pared this year’s gains to 12 percent, from as much as 23 percent on May 22. The broader Swiss Performance Index (SPI) was also little changed today.
“The bond markets are being watched very closely by stock investors,” said Peter Braendle, who helps manage $60 billion at Swisscanto Asset Management in Zurich. “They look calmer than yesterday, which is good. So there’s no more panic in the market, but investors are on the sidelines and taking a breather. They’re also getting more excited about possible takeovers increasing in Europe, like Kabel Deutschland in Germany, for example.”
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