Swiss Market Closes Sharply Lower On Weak Global Cues

(RTTNews) - Swiss stocks fell sharply on Monday, tracking weak global markets amid rising fears of a possible recession, and on news about a surge in coronavirus cases in China.

With the Federal Reserve very likely to hike interest rates by 50 basis points on Wednesday, and expected to keep hiking rates this year, traders are increasingly concerned tighter policy measures could trigger a period of stagflation or an outright recession.

The benchmark SMI, which fell to a low of 10,855.25, ended the session with a loss of 188.37 points or 1.7% at 10,896.25.

Nestle, which advanced by about 0.6%, was the lone gainer in the SMI index.

Partners Group shed nearly 5%. Logitech and Lonza Group ended lower by 4.35% and 4.16%, respectively.

ABB, Credit Suisse, UBS Group, Alcon and SGS lost 3.3 to 3.55%. Sika, Swiss Life Holding, Geberit and Richemont drifted down 2.6 to 3%. Roche Holding, Swiss Re, Givaudan and Novartis also ended sharply lower.

In the Swiss Mid Price Index, Temenos Group tanked more than 10%. AMS ended 9.7% down, Zur Rose drifted down 8.71% and Dufry closed lower by 7.57%.

Julius Baer lost about 6.4%. Adecco, Straumann Holding, SIG Combibloc, VAT Group, BB Biotech, Georg Fischer and Sonova shed 4 to 5.4%.

Tecan Group, Schindler Holding, Bachem Holding, Flughafen Zurich and Schindler Ps also ended sharply lower.