Swiss Stocks Rise on Signs U.S. Lawmakers May Reach Deal
Swiss stocks advanced, trimming their biggest weekly decline since August, as U.S. lawmakers indicated their willingness to discuss a short-term deal to avoid a default.
UBS AG (UBSN), Switzerland’s biggest bank, rose 2.1 percent for the biggest gain on the benchmark Swiss Market Index. Syngenta AG (SYNN) added 1 percent as Berenberg Bank said it expects the company to post strong second-half results. Givaudan SA (GIVN) fell after reporting its first sales decline in at least six quarters.
Panalpina Welttransport Holding AG (PWTN) gained 5.7 percent after Bank Vontobel raised its recommendation on the shipping company to buy from hold and set a price target of 160 francs, the highest among brokerages tracked by Bloomberg.
The SMI (SMI) gained 0.7 percent to 7,812.63 at 9:36 a.m. in Zurich. It has still slipped 1.6 percent this week as U.S. lawmakers wrangled over raising the debt ceiling and a federal budget required to reopen a partially shut government. The broader Swiss Performance Index also added 0.7 percent today.
In the U.S., House Republicans and Senate Democratic leaders are open to raising the country’s $16.7 trillion debt limit in the short-term, according to congressional aides of both parties who spoke on condition of anonymity.
President Barack Obama has said he will accept a short-term increase and an agreement to end the government shutdown that began on Oct. 1 and then enter broader fiscal negotiations with Republicans. The Treasury has said it will exhaust measures to avoid breaching the borrowing limit on Oct. 17.
The volume of shares changing hands in SMI-listed companies was 3.2 percent greater than the average of the last 30 days, according to data compiled by Bloomberg.
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