Swiss Market Ends Sharply Lower
(RTTNews) - The Switzerland stock market ended notably lower on Wednesday, in line with markets across Europe, after data showing a faster-than-expected acceleration in U.S. inflation raised concerns the Fed will continue to aggressive hike interest rates in the coming months.
The benchmark SMI, which tumbled to a low of 10,805.39, ended with a loss of 164.98 points or 1.49% at 10,904.85.
Credit Suisse, Logitech and UBS Group lost 3 to 3.8%. Sika and Partners Group both ended lower by about 2.6%. Zurich Insurance Group, Novartis, Nestle, Holcim, Swiss Re and ABB shed 1.4 to 2%.
In the Mid Price Index, Zur Rose ended more than 5% down. Temenos Group drifted down 3.6%. Adecco, Bachem Holding, Julius Baer, Barry Callebaut, Ems Chemie Holding and Helvetia lost 1.5 to 3%.
Dufry climbed 3.7%. VAT Group gained about 2%, while AMS and Lindt & Spruengli posted modest gains.
Data from the U.S. Labor Department showed that the consumer price index shot up by 1.3% in June after jumping by 1% in May. Economists had expected consumer prices to leap by 1.1%.
With the bigger than expected monthly surge, the annual rate of consumer price growth accelerated to 9.1% in June, reflecting the biggest increase since November 1981. Economists had expected the annual rate of consumer price growth to accelerate to 8.8% in June from 8.6% in May.
The red-hot inflation data supported expectations for a more aggressive tightening path from the Fed in the coming months.
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