The Swiss Stock Market Got Off To A Weak Start To 2016 Due To China Worries

(RTTNews) - The Swiss stock market ended the first trading session of the new year with a significant decline. A sharp drop in the Asian markets sparked losses in global markets, after the release of the weaker than expected Chinese manufacturing report. Markets across Europe and the United States were also under intense pressure.

The escalating dispute between Saudi Arabia and Iran also had investors on edge. Saudi Arabia cut diplomatic ties with fellow OPEC member Iran on Sunday after its embassy in Tehran was attacked. Iranians were protesting the Saudi execution of prominent Shiite Muslim cleric Nemer al-Nemer.

The Swiss Market Index dropped 1.83 percent Monday and finished at 8,656.31. The Swiss Leader Index declined 2.24 percent and the Swiss Performance Index lost 1.81 percent.

Concerns over China sparked weakness in the luxury goods companies. Swatch sank 4.2 percent and Richemont weakened by 3.1 percent.

Shares of Schindler also felt the sting of China concerns, falling 4.9 percent. China is a very important market for Schindler and the construction industry. The lift and escalator manufacturer also ended its share buyback program, which began back in January of 2013.

Cyclical stocks also turned in a weak performance Monday. LafargeHolcim decreased 3.4 percent and ABB surrendered 2.9 percent. Adecco weakened by 2.8 percent and SGS lost 2.7 percent.

Financial stocks were also under pressure. Credit Suisse and UBS declined by 2.5 percent and 2.4 percent respectively. Julius Baer finished lower by 2.4 percent. The company announced late last week that it had reached an agreement in principle to resolve its tax dispute in the U.S. Zurich Insurance also sank 3.2 percent.

The index heavyweights all finished in the red Monday. Roche decreased 1.2 percent and Novartis fell 1.4 percent. Shares of Nestlé also weakened by 1.3 percent.

In the broad market, Addex surged 7.4 percent. The company announced that the U.S. FDA has granted orphan drug status to dipraglurant.