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The Swiss Stock Market Climbed Sharply On U.S. Optimism

The Swiss stock market finished solidly in positive territory Thursday and closed just below a new yearly high. Positive economic data from both the Eurozone and the United States provided a boost to investor sentiment. More importantly, optimism that a deal can be reached in the U.S. to resolve the fiscal cliff sparked a rally.

Statements made yesterday by both President Barack Obama and Speaker of the House John Boehner suggested that a deal to avoid a budget crisis could be reached before the end of the year. A strong upward revision to U.S. GDP and a surge in pending home sales were also viewed positively. A surprisingly successful bond auction in Italy also contributed to the positive mood.

The Swiss Market Index rose by 1.07 percent Thursday and finished at 6,828.52, only slightly below the new year high of 6,829 points. The Swiss Leader Index increased by 1.05 percent and the Swiss Performance Index gained 1.00 percent.

Zurich Insurance climbed by 2.5 percent, ahead of its Investor Day. The insurer confirmed that it intends to distribute a "sustainable and attractive" dividend.

Standard & Poor's confirmed the credit rating on shares of UBS with "A" and a stable outlook. Credit Suisse was confirmed at "A +" and a negative outlook. UBS ended the session higher by 0.7 percent, while Credit Suisse rose by 2.1 percent.

by RTT Staff Writer

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