Bears Circle Swiss Stocks Already Slammed by Franc, China Slump
- The SMI is heading for its biggest monthly loss since 2009
- Bearish option prices have shot up as exporters seen at risk
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First it was the strengthening of its currency in January that sent Switzerland’s stocks down, only to recover two months later. Now it’s China’s economy, and this time options traders don’t see a speedy recovery.
With a 6.9 percent plunge in August, Swiss equities are heading for their biggest drop in six years, worse than the slump in January, when the nation’s central bank abandoned its franc cap. Now bears are paying the most since October to protect against further declines.