Swiss stocks advanced, rebounding from their largest decline in more than six weeks, as a report showed German consumer confidence beat economists’ estimates.
UBS AG rose 0.8 percent after RBC Capital Markets upgraded Switzerland’s biggest lender. Komax Holding AG added 1.3 percent after the wire-processing machine manufacturer acquired a stake in SLE Quality Engineering GmbH.
The Swiss Market Index rose 0.1 percent to 8,245.68 at the close of trading in Zurich. The equity benchmark lost 0.8 percent yesterday. The gauge has climbed 21 percent in 2013, heading for its biggest annual rally since 2005, as central banks around the world pledged to leave interest rates low. The Swiss Performance Index also advanced 0.1 percent today.
“Good news on the economic front is good news for equity markets,” said Christoph Hock, an equity sales trader at Alpha Wertpapierhandels GmbH in Frankfurt. “Paired with thin liquidity -- currently in Europe 25 percent below the 20-day average -- this has given a green light for equities.”
The volume of shares changing hands in SMI-listed companies was 24 percent lower than the average of the last 20 days, according to data compiled by Bloomberg.
German consumer confidence will increase to 7.4 next month from 7 in November, according to research company GfK AG. The data beat the median economist estimate that called for a December gain to 7.1 in a Bloomberg survey.
In the U.S., the final reading of the Thomson Reuters/University of Michigan November consumer-sentiment index rose to 75.1 from a preliminary reading of 72.
UBS rose 0.8 percent to 16.97 Swiss francs after RBC upgraded the shares to outperform, the equivalent of a buy recommendation, citing an attractive valuation. RBC has a 12-month price estimate of 20 francs on the shares.
Komax Holding gained 1.3 percent to 136.10 francs. The company said in a statement that it has held a 30 percent stake in SLE Quality Engineering since March 2011 and will purchase a majority holding by the New Year.