Swiss Stocks Drop, Snapping Longest Rally Since January
Swiss stocks declined, snapping the longest streak of gains for the Swiss Market Index since January, as investors awaited a report that may show U.S. factory orders rose in May.
ABB Ltd. (ABBN) slipped 0.8 percent after Exane BNP Paribas SA downgraded its rating of the world’s largest supplier of power grids. Swiss Re (SREN) Ltd. fell 1.4 percent after JPMorgan Chase & Co. lowered its recommendation for the stock.
The SMI (SMI) dropped 0.4 percent to 7,711.44 at 9:53 a.m. in Zurich, snapping a five-day rally. The equity benchmark lost 3.3 percent in June and 1.7 percent in the second quarter as the Federal Reserve said it may reduce its bond buying if the U.S. economy recovers in line with its forecasts. The gauge advanced 3.5 percent last week, its largest jump since December 2011. The broader Swiss Performance Index slid 0.2 percent today.
In the U.S., a Commerce Department report at 10 a.m. Washington time may show factory orders rose 2 percent in May, according to the median forecast of 61 economists surveyed by Bloomberg. They rose 1 percent in April.
New York Fed President William C. Dudley speaks on regional and national economic conditions at 12:30 p.m. in Connecticut. Fed Governor Jerome Powell will address a Deutsche Bundesbank reception at 5:45 p.m. in New York about reforming international financial regulations.
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