The Swiss stock market finished well off its intraday high on Monday, but managed to hold on to a slight increase. Eurozone ministers agreed on Saturday to lend Spain up to EUR 100 billion to shore up its banks. The news initially sparked a relief rally this morning, but those gains steadily eroded as the day progressed.
Investors began to question whether the Spanish bailout was the correct decision. Now that Spain has accepted a bailout, what will happen in Italy? Also, the second round of elections in Greece will be held this weekend, which will likely determine whether Greece will leave the Eurozone.
The Swiss Market Index climbed by 0.04 percent Monday and closed at 5,871.35. The intraday high was around 5,956. The Swiss Leader Index dipped by 0.01 percent, but the Swiss Performance Index gained 0.05 percent.
Financial stocks rallied in early trade Monday on the news of the Spanish bank bailout, but later turned negative. UBS declined by 1.4 percent and Credit Suisse fell by 0.2 percent. Julius Baer finished with a gain of 0.3 percent.
The index heavyweights finished mixed on Monday. Nestle fell by 0.1 percent after Societe Generale lowered its rating on the stock to "Hold" from "Buy." Novartis dipped by 0.1 percent after the company presented positive study results from the already approved drug Gilenya. Roche finished unchanged on the day. The company was awarded approval by the U.S. Food and Drug Administration for the breast cancer drug pertuzumab.
by RTT Staff Writer
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