Swiss stocks advanced for a fourth day after Italy’s Mario Monti agreed to form a new government as part of efforts to tame the euro area’s sovereign-debt crisis.
Adecco SA, the world’s biggest supplier of temporary workers, jumped 3.2 percent as HSBC Holdings Plc recommended buying the shares. Dufry SA, the operator of duty-free shops, gained 3.7 percent. Baloise Holding AG, Switzerland’s third-biggest insurer, slid 3.9 percent after forecasting “considerably lower” profit this year.
The Swiss Market Index, a measure of the largest and most actively traded companies, added 0.4 percent to 5,685.8 at the close in Zurich, having earlier dropped as much as 0.5 percent and climbed as much as 0.9 percent. The SMI has rebounded 19 percent from this year’s low on Aug. 10 as policy makers increased their struggle to resolve the European fiscal crisis. The Swiss Performance Index advanced 0.3 percent today.
“Investor optimism is driven by news reports,” said Christian Zogg, who manages about $540 million at LLB Asset Management in Vaduz, Liechtenstein. “Any bit of disappointing news will cause a downturn. The ups and downs will continue as the problem can’t be solved in the short term.”
Monti’s New Government
Monti accepted an offer to form a new Italian government, Donato Marra, secretary general of the country’s presidency, told reporters in Rome today. He will also be finance minister.
“It’s an important step,” said Patrik Scheuber, head of equities at Swisscanto Asset Management AG in Zurich. “The market hopes that Monti -- as soon as the new government stands -- can deliver.”
Swiss stocks earlier pared gains as UniCredit SpA said Chief Executive Officer Federico Ghizzoni will ask the European Central Bank to broaden the type of assets banks can use as collateral.
Adecco jumped 3.2 percent to 38.59 Swiss francs after HSBC upgraded the stock to “overweight” from “neutral” and raised the price estimate for the company’s shares to 59 francs from 34 francs.
Dufry gained 3.7 percent to 95.75 francs after it reported nine-month sales of 1.88 billion francs ($2.1 billion).
Transocean Ltd., the world’s largest provider of offshore oil rigs, increased 1.3 percent 45.14 francs as crude climbed above $100 a barrel to a five-month high in New York trading.
Baloise slumped 3.9 percent to 65.65 francs after the company predicted it will post “considerably lower” profit this year because of losses on investments and a writedown on Greek sovereign debt.
Insurers pulled the SMI lower, with Swiss Life Holding AG, the country’s largest life insurer, and Swiss Re Ltd., the world’s second-biggest reinsurer, falling 2 percent to 95.75 francs and 1.3 percent to 48.30 francs, respectively.