The Swiss stock market continued its recovery on Thursday, extending yesterday's strong gains amid optimism over Greece's sovereign debt situation.
Stocks lost momentum around mid-day, but resumed their upward climb on indications that U.S. lawmakers will raise the nation's debt ceiling.
Banks led the way, as Greece moved closer to getting a massive bailout package by passing sweeping budget reforms. A number of European banks will be voluntary participants in the plan.
"Above all, financial stocks benefit from the fact that the fear goes out of their business, " said market strategist Thilo Mueller of MB Fund Advisory.
The SMI was up 1.4 percent to 6,187. The Swiss Leader Index (SLI) rose by 1.56 percent to 964.38 meters and the Swiss Performance Index (SPI) increased by 1.41 percent to 5'684.
Roche was weakest among the blue-chips after U.S. Food and Drug Administration advisory panels decision to recommend that the regulatory body withdraw its approval of Avastin in combination with paclitaxel chemotherapy for treating metastatic breast cancer. Shares rose 0.5 percent.
Lonza is the big gainer on the main index, rising 5.5 percent. The chemical company expects a negative currency impact of CHF 60-70 million, not as bad as feared. UBS maintained its "buy" rating.
Financial stocks also continue to benefit from the relaxation of the Greek crisis. Swiss Life Insurance, ZFS and Swiss Re were up 2.4 percent each. Credit Suisse added 1.2 percent reports that it will cu t 600 jobs in its investment bank.
Novartis (unpublished) reported positive results of a Phase III trial (GLOW2) at NVA237 for the lung disease COPD. The results of this study would indicate that regulatory approval may be sought by the end of 2011. Shares were up 1.9 percent.
Panalpina rose 1.3 percent after the shipping company announced targeted EBITDA margins of 20%.
Barry Callebaut is down 0.2 percent. The chocolate producer has increased its sales volume in the first nine months of 2011 (as of end May) by 7.3 percent, which met analysts' expectations almost exactly.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.