Swiss Stocks Rally As ECB Mulls Zero Interest Rate

(RTTNews) - Swiss stocks outperformed modest gains in other European markets Wednesday, thanks in part to strength among luxury brands and food giant Nestle.

Investors were looking ahead to tomorrow's interest rate decision from the European Central Bank.

Eurozone producer prices declined at the fastest pace since end-2009, reinforcing fears of deflation in the currency bloc.

The ECB may finally step in by lowering rates to zero in hopes of stoking inflation to healthy levels.

the Swiss Market Index (SMI) rose by 0.60 percent to 8,508 points. It was the third close above 8,500 this year.

Nestle rose 1.5 percent on a ratings upgrade.

Swatch gained 1.6 percent on hopes for demand for its watches.

Richemont was also up 1 percent.

Dufry slipped 0.3 percent after JP Morgan rated shares "Underweight."

PubliGroupe shares skyrocketed up 27 percent as the Swiss marketing company sold its loss-making media sales business Publicita.