(RTTNews.com) – The Swiss stock market ended the first session of the new trading week in the red. The market got off to a weak start and extended its losses in the early afternoon. The Swiss stock market ended four out of the previous 5 sessions in the red as well.
Investors were in a cautious mood Monday, in anticipation of Wednesday’s announcement from the Federal Reserve. The Fed is widely expected to leave interest rates unchanged when it concludes its two day policy meeting. Traders were also concerned over the drop in crude oil prices at the start of the week, as doubts have crept in that OPEC will be able to come to an agreement on production cuts.
The Swiss Market Index decreased 1.02 percent Monday and finished at 7,827.74. The Swiss Leader Index dropped 0.62 percent and the Swiss Performance Index lost 0.82 percent.
The luxury good companies turned in a weak performance. Swatch declined 2.4 percent and Richemont weakened by 1.8 percent. The stocks have risen considerably over the last few weeks, so the pullback was attributed to profit taking.
The bank stocks were also under pressure. Credit Suisse decreased 1.4 percent and UBS dropped 1.8 percent. Among the insurers, Swiss Re surrendered 1.0 percent and Swisscom lost 0.7 percent.
However, Bâloise and Swiss Life each gained 0.3 percent.
Syngenta fell by 0.8 percent. The EU Commission will take a close look at the proposed takeover by the Chinese chemicals group ChemChina and is launching an in-depth investigation.
The index heavyweights all finished in negative territory. Novartis and Roche fell by 1.0 each and Nestlé lost 1.4 percent.
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Plantations International