The Swiss stock market began the new trading week in positive territory, rebounding from the weakness of the prior week. Financial and cyclical stocks were among the best performers on Monday, thanks to optimism that a solution can be found regarding the looming U.S. fiscal cliff.
After the European markets had closed on Friday, a bipartisan group of U.S. Congressional leaders made statements regarding the progress of the first day of negotiations to find a solution to the fiscal cliff. Republicans announced that revenues are now on the table, as long as they are accompanied by spending cuts. The leaders announced that they are not going to wait until the last minute to come to a solution. Over the weekend, President Obama stated that he is confident "we can get our fiscal situation dealt with."
The Swiss Market Index climbed by 2.00 percent Monday and finished at 6,638.89. The Swiss Leader Index gained 2.42 percent and the Swiss Performance Index added 2.02 percent.
The big banks were the best performers among the financial stocks. Credit Suisse climbed by 4.4 percent and UBS rose by 4.3 percent. Swiss Life increased by 3.2 percent and Swiss Re added 1.8 percent. Zurich Insurance also gained 2.3 percent, recovering from last week's weakness.
Luxury goods companies climbed on some positive Chinese consumer confidence data. Richemont advanced by 5.2 percent, while Swatch Group rose by rose by 3.8 percent. Among the cyclicals, Clariant climbed by 4.7 percent and Geberit finished up by 2.7 percent. Sika gained 2.7 percent and Holcim added 2.6 percent.
by RTT Staff Writer
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