Swiss Stocks Advance on Chinese Industrial Output ReportJonathan Morgan
Swiss stocks advanced, halting a two-day drop, as a report showed Chinese industrial production grew at a faster pace than economists had forecast.
Credit Suisse Group AG rallied 2.6 percent to a two-month high. Swisscom AG rose 0.9 percent, following European telecommunications shares higher. Nestle SA slid 1.3 percent after Deutsche Bank AG cut its share-price estimate on the the world’s largest food company.
The Swiss Market Index added 0.3 percent to 7,977.34 at the close of trading in Zurich, as two shares rose for each one that fell. Gains were limited as a report showed French industrial production unexpectedly dropped in June and Federal Reserve Bank of Dallas President Richard Fisher told the Handelsblatt newspaper that the U.S. central bank should start tapering its bond purchases next month if economic data doesn’t deteriorate.
“Chinese data is counterbalanced this morning by weak manufacturing data from France and talk of further tapering from Fed President Richard Fisher,” Ion-Marc Valahu, co-founder and fund manager at Clairinvest in Geneva, wrote in an e-mail. “The markets are brushing these warning signs aside.”
The SMI added 0.2 percent this week, bringing its 2013 rally to 17 percent. The broader Swiss Performance Index gained 0.3 percent today.
China’s industrial output rose 9.7 percent last month from a year earlier, according to data from the National Bureau of Statistics, topping the 8.9 percent median forecast of economists in a Bloomberg survey. The nation’s retail sales advanced 13.2 percent.
Credit Suisse, Switzerland’s second-largest bank, climbed 2.6 percent to 28.67 Swiss francs for the biggest gain in the benchmark SMI.
Swisscom, Switzerland’s biggest phone company, advanced 0.9 percent to 427.50 francs.
Meyer Burger Technology AG, a provider of equipment to the solar industry, jumped 7.7 percent to 7.45 francs as it agreed on a joint strategy with Roth & Rau AG to develop product offerings for organic electronics, display and security markets. This will be followed by a project involving flat-panel displays, the company said.
Nestle, which accounts for 21 percent of the SMI by weight, slipped 1.3 percent to 62.45 francs as Deutsche Bank cut its target price on the shares to 60 francs from 63 francs. The brokerage kept its hold rating.
Nestle dropped 2.2 percent yesterday after reporting its slowest first-half revenue growth in four years.
The volume of shares changing hands in SMI-listed companies was 12 percent greater than the average of the last 30 days, according to data compiled by Bloomberg.