French Vote Sends Traders Flocking to Swiss Stock-Market Haven
- Strong economy and weaker franc help boost confidence
- SMI members trade around five-year mean versus Euro Stoxx 50
Citi Strategist Sees Global Markets Focused on France
This article is for subscribers only.
Swiss stocks are once again becoming investor favorites.
With elections in neighboring France stoking concern over an end to the current market calm, traders are seeking the refuge of the defensive-heavy Swiss Market Index. With a 4 percent advance, the gauge has become this year’s best performer among major European equity measures. At the same time, the cost of hedging against stock swings has dropped from a high, reaching in February its lowest level since October relative to protection prices on the Euro Stoxx 50 Index.