Swiss stock market awaits result of Italian referendum

SMI

Investors appear to be staying on the sidelines this week ahead of the weekend’s Italian referendum. Swiss stocks are set to finish the week lower, underperforming global equities as food giant Nestle and pharmaceutical heavyweights Roche and Novartis drag the index down.

SMI Index, December 02

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Economic Data

It’s been a volatile trading week across financial markets. Oil prices jumped almost 9% on Wednesday after OPEC members finally agreed a deal to cut production while upbeat US economic data triggered further bond market selling, ending a miserable November for Treasuries. Global equity market’s failed to make any real progress, consolidating after last month’s highs.

SMI vs. MSCI World

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SMI vs. MSCI World Week, December 02

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Swiss Economic Data

In Switzerland, the economy failed to grow (0.0%) for the first time in more than a year in the third quarter, held back by weak domestic demand and the first fall in government spending since early 2014. The statistics office said the weak performance wasn’t a sign of the recovery being thrown off course. Some analysts said that the surprisingly slow growth the quarter is an outlier and that while the stronger franc remains a concern, the country’s economic recovery remains intact.

Swiss Bonds and FX

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Swiss Companies

In company news, Credit Suisse Group hit the headlines this week, saying the bank is cutting 175 jobs in London to lower costs. The measures will bring the bank closer to a previously announced goal of eliminating 6,000 jobs this year and scale back the global markets business.

Swiss Companies

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