Swiss Stock Market Extends Losing Streak

(RTTNews) - The Swiss stock market finished lower on Friday for the third straight session, dropping more than 210 points or 1.9 percent in that span.

The SMI opened slightly higher but quickly turned lower, spending the rest of the day well beneath the unchanged line - in line with most other European markets.

Investors were unimpressed with the latest batch of European economic data, and they remain nervous about the Federal Reserve's rate decision next week - although it is widely expected that the Fed will leave rates unchanged.

For the day, the index shed 54.48 points or 0.48 percent to finish at 11,254.42 after trading between 11,238.63 and 11,321.23.

Among the actives, Givaudan plummeted 3.08 percent, while Lonza Group tanked 2.63 percent, Swiss Re tumbled 1.74 percent, Swatch Group advanced 0.99 percent, ABB added 0.76 percent, Roche Holding dropped 0.65 percent, Swisscom gained 0.51 percent, Credit Suisse slumped 0.37 percent, UBS sank 0.30 percent, Swiss Life collected 0.30 percent, Novartis dipped 0.22 percent and Zurich Insurance eased 0.12 percent.

In corporate news, UBS AG (UBS) and the Swiss government have signed a Loss Protection Agreement (LPA), through which the government will bear potential realized losses upon the completion of the acquisition of Credit Suisse Group (CS). The acquisition is expected to be completed as early as June 12.

With this, the government guarantees losses of up to CHF 9 billion, if realized on a designated portfolio of Credit Suisse non-core assets once UBS bears the first CHF 5 billion of any realized losses. The LPA will remain in effect until the realization of all assets covered by the guarantee, or until it is terminated by UBS.

On June 5, UBS said it is expecting to complete the acquisition of CS as early as June 12. Upon completion, Credit Suisse shares and ADS will be delisted from the SIX Swiss Exchange and New York Stock Exchanges.