Swiss Stocks Rebound From Weekly Loss on Iran Deal
Swiss stocks advanced, after the benchmark index posted its biggest weekly loss since early October, as Iran’s accord with world powers to limit its nuclear program reduced political risks for investors.
Novartis AG (NOVN) climbed after Natixis SA advised investors to buy the stock. Tornos Holding AG (TOHN) rose 3.9 percent after the machine-tools maker said investor Walter Fust made a takeover offer. Partners Group Holding AG (PGHN) fell 2.4 percent as Mediobanca SpA cut its price estimate for the money manager by 6 percent.
The SMI (SMI) added 0.5 percent to 8,294.8 at 9:38 a.m. in Zurich, snapping a four-day drop. It has surged 22 percent this year, heading for the biggest annual rally since 2005, as central banks around the world pledged to leave interest rates low. The Swiss Performance Index also climbed 0.5 percent today.
The volume of shares changing hands in SMI-listed companies was 38 percent lower than the average of the last 30 days, according to data compiled by Bloomberg.
Iran agreed to limit its nuclear program in exchange for as much as $7 billion in relief from economic sanctions for six months. The Asian nation and the six countries it entered a pact with -- the U.S., U.K., Germany, France, Russia and China -- aim to conclude a comprehensive deal within six months.
The accord is the first major breakthrough in the dispute over Iran’s nuclear program since 2003. Questions over the purpose of that plan has deepened the rift between Shiite and Sunni Muslims in the Middle East, sparked threats of military action by the U.S. and Israel, and raised concerns that the oil-rich region was heading for a nuclear arms race.
In the U.S., a report at 10 a.m. New York time may show that pending sales previously owned houses rose 1.1 percent in October, rebounding from a 5.6 percent decline the previous month, according to the median forecast of 34 economists in a Bloomberg News survey.
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