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Stocks in Switzerland Plummet Amid Greece Default Concerns

Strategic Insights

— 1 min read

Concerns over Greece's potential debt default led to a decline in stocks in Switzerland, with financial shares taking a hit. The Swiss Market Index (SMI), a gauge of the biggest and most actively traded Swiss companies, fell 0.8 percent to 6,791.01, the lowest close since February 26. The broader Swiss Performance Index lost 0.7 percent. Analysts attributed the decline to increased uncertainty surrounding Greece's debt crisis, which has led to a spike in credit-default swaps on Greek debt and a jump in the 10-year yield premium to German bunds.

Key Takeaways:

  • Stocks in Switzerland fell to the lowest in over a month, with financial shares leading the decline.
  • The Swiss Market Index (SMI) lost 0.8 percent to 6,791.01, the lowest close since February 26.
  • Credit Suisse Group AG lost 2 percent, while UBS AG declined 3.1 percent.
  • Swiss Reinsurance Co. sank 2.6 percent after completing its share buyback, purchasing 26.2 million shares for 2.1 billion Swiss francs ($1.95 billion).
  • Analysts at Piper Jaffray downgraded Temenos Group AG, causing it to fall 2.9 percent.
  • Roche Holding AG gained 1.7 percent as Credit Suisse said the recent decline was a buying opportunity.
  • The SMI has rallied for four straight quarters due to record low interest rates and a contingency rescue plan to help prevent Greece from defaulting on its debt.
  • The SMI is 58 percent higher than its six-year low on March 9 last year.

Statistics:

  • The Swiss Market Index (SMI) lost 0.8 percent to 6,791.01.
  • Credit Suisse Group AG lost 2 percent, while UBS AG declined 3.1 percent.
  • Swiss Reinsurance Co. purchased 26.2 million shares for 2.1 billion Swiss francs ($1.95 billion).
  • Credit-default swaps on Greek debt rose to a record high.
  • The 10-year yield premium to German bunds jumped to the most since the euro's debut.
  • The SMI has rallied for four straight quarters.

Sources:

  • Euclid Infotech Pvt. Ltd.
  • Syndigate.info (an Albawaba.com company)
  • Cassa Lombarda in Milan (statement from Alessandro Valentinis, head of trading)
  • Sanford C. Bernstein & Co. (research report)
  • Zuercher Kantonalbank (report to clients)
  • Swiss Reinsurance Co. (press release)
  • Credit Suisse Group AG (statement)
  • UBS AG (press release)

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