Stocks in Switzerland climbed, rebounding from their biggest three-day selloff in 21 months, after two Federal Reserve presidents emphasized that U.S. monetary policy remains accommodative.
Schmolz & Bickenbach (STLN) AG rallied 3.6 percent after a Zurich court limited the voting rights of its biggest shareholder.
The Swiss Market Index (SMI) rose 1 percent to 7,324.36 at 10:59 a.m. in Zurich. The gauge had tumbled 6.2 percent in the previous three trading days, its biggest slide since September 2011, as the Federal Reserve indicated that it may start paring stimulus measures this year if the economy strengthens. The broader Swiss Performance Index gained 1.1 percent today.
“European share markets are rebounding, shrugging off declines in overseas markets,” said Ishaq Siddiqi, a market strategist at ETX Capital in London, in e-mailed comments. “The risk tone has improved somewhat after Dallas Federal Reserve head Fisher attempted to downplay the markets’ reaction to central-bank tapering.”
The volume of shares changing hands in SMI-listed companies was 13 percent greater than the average of the last 30 days, according to data compiled by Bloomberg.
The President of the Fed Bank of Dallas, Richard Fisher, said in London yesterday that the central bank will continue its bond-buying program.
“What we’re talking about here is dialing back,” Fisher said. “The word ‘exit’ is not appropriate here.” The head of the Dallas Fed doesn’t vote on policy this year.
Minneapolis Fed President Narayana Kocherlakota, who has called for easier policy, said yesterday the Fed must emphasize that policy will remain accommodative “for a considerable time” after the end of quantitative easing. Kocherlakota, who also doesn’t vote this year, spoke to reporters during a conference call.
A U.S. Commerce Department report at 8:30 a.m. in Washington will show that durable-goods orders rose 3 percent in May after increasing a revised 3.5 percent in April, according to the median economist forecast in a Bloomberg survey.
A separate release at 9 a.m. will probably show that house prices in 20 cities jumped 10.6 percent for the year through April. A Conference Board report -- due at 10 a.m. -- will show that a measure of consumer confidence fell this month from a five-year high in May, according to economists.
Schmolz & Bickenbach climbed 3.6 percent to 2.89 Swiss francs after the Zurich Commercial Court ruled that the company’s biggest shareholder can use only 20.46 percent of the total votes. The shareholder, which is controlled by members of the founding family, owns 40.46 percent of the equity.
Schmolz & Bickenbach said on June 10. that it plans to increase its earnings before interest, taxes, depreciation and amortization by 230 million euros. The steelmaker’s board rejected a proposal from its main shareholder on June 5 to increase its capital by 434 million francs ($465 million).
Basilea Pharmaceutica (BSLN) jumped 4.7 percent to 67.10 francs, after sliding 4.8 percent yesterday. The company received a contract of as much as $89 million to develop its novel antibiotic BAL30072.
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