The Swiss stock market climbed sharply on Wednesday, following the positive earnings report from aluminum producer Alcoa late Tuesday. The company's report is traditionally viewed as the beginning of the earnings reporting season in the United States. Alcoa's earnings matched expectations and investors were encouraged by the company's outlook
Investors will be closely watching the interest rate decision from the European Central Bank on Thursday. Most economists are not expecting any change in the interest rate, but weak economic data from Germany has fueled speculation of a further ECB rate cut.
The Swiss Market Index increased by 1.09 percent Wednesday and finished at 7,151.43. This was the first time the SMI has re-crossed the 7,100 point mark since September of 2008. The Swiss Leader Index climbed by 1.24 percent and the Swiss Performance Index added 1.04 percent.
Richemont was among the best performing stocks at mid-week, with a gain of 4.5 percent. Credit Suisse upgraded its rating on the luxury goods manufacturer to "Outperform" from "Neutral." Swatch also finished the day higher by 1.3 percent.
Banks also turned in a strong performance Wednesday. UBS increased by 4.1 percent and Credit Suisse gained 2.6 percent. Among the insurers, Swiss Life climbed by 3.4 percent and Zurich Insurance add 1.6 percent.
by RTT Staff Writer
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