Swiss Stocks Erase Drop as Adecco Rises; Holcim Retreats
Stocks in Switzerland erased their decline as investors awaited a U.S. manufacturing report.
Holcim Ltd. (HOLN) retreated 1.3 percent after J&E Davy Holdings Ltd. downgraded the world’s largest cement maker because it generates much of its earnings in emerging-market currencies.
The Swiss Market Index (SMI) climbed 0.1 percent to 7,902.67 at 11:33 a.m. in Zurich, erasing a drop of as much as 0.5 percent. The equity benchmark rallied 1.9 percent yesterday for its biggest gain since July 4. The broader Swiss Performance Index also increased 0.1 percent today.
“It’s a wait-and-see until U.S. ISM,” Christian Schmidt, a market analyst at Helaba Landesbank Hessen-Thueringen in Frankfurt, said. “Yesterday’s rally indicated that the U.S. market will start the week with a positive tone.”
A report at 10 a.m. New York time may show that U.S. manufacturing expanded in August. The Institute for Supply Management’s factory index will post a reading of 54 for last month, according to the median forecast of 80 economists in a Bloomberg News survey. The gauge came in at 55.4 for July. Readings above 50 mean that activity increased.
A report on Sept. 6 may show that U.S. employers added more workers in August. Payrolls probably rose by 180,000 last month, after adding 162,000 in July, according to the median forecast of 77 economists in a Bloomberg News survey.
The Federal Reserve holds a policy meeting on Sept. 17-18 to decide whether to slow the pace of its bond-purchase program. Fed Chairman Ben S. Bernanke has said that the central bank may consider tapering if the employment outlook improves substantially and the economy grows as forecast.
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