The Swiss stock market pulled back again Tuesday, extending yesterday's losses. Profit taking was to be expected following the strong rally at the end of the previous trading week. Sectors that benefited the most from last week's rally, such as banks and cyclicals, were among the decliners on Tuesday.
There was a lack of corporate news reported on Tuesday. Economic data from the United States showed a surprisingly sharp drop current account deficit in the second quarter and a better than expected NAHB Housing Market Index result.
The Swiss Market Index fell by 0.23 percent Tuesday and closed at 6,537.10. The Swiss Leader Index declined by 0.84 percent and the Swiss Performance Index lost 0.35 percent.
Financial stocks were among the weakest performers during Tuesday's session. UBS dropped by 3.2 percent after Barclays confirmed its "Underweight" rating on the stock. Credit Suisse and Julius Baer both fell by 1.7 percent each. Baloise and Swiss Life each declined by 1.6 percent.
Among the cyclicals, Kuehne + Nagel decreased by 2.5 percent. Swatch lost 2.2 percent and Richemont dipped by 0.2 percent. Swatch was downgraded by UBS to "Neutral" from "Buy," while Richemont was added to the Most Preferred List.
by RTT Staff Writer
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