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Swiss Market Ends Notably Lower On Trade War Worries

The Switzerland stock market ended notably lower on Monday, as global growth concerns rose following an escalation in U.S.-China trade war after the U.S. government's ban on Chinese technology major Huawei.

The benchmark SMI ended down 77 points, or 0.8%, at 9,582.08, nearly 50 points off the day's low of 9,536.04.

Among other major indices in Europe, the U.K.'s FTSE 100 shed 0.51%, while Germany's DAX and France's CAC 40 lost 1.61% and 1.46%, respectively. The pan European Stoxx 600 shed 1.06%.

LafargeHolcim, which shed about 4.6%, was the biggest loser in the benchmark index. Alcon and Swatch Group both ended lower by about 2.5%

Lonza Group, Novartis, Credit Suisse and Givaudan shed 1.3 to 2.1%. Sika ended nearly 1% down. UBS Group, Swiss Life Holding, Nestle and SGS also ended weak.

VAT Group ended 7.5% down and Julius Baer lost about 4.7%, while Logitech International ended lower by 3%.

Shares of AMS plunged 13.4% due to heavy selling, in line with the trend seen in the technology space across Europe.

Following the U.S. decision to ban Huawei from buying components and technology from US firms without prior approval from the US government, some top technology companies in the U.S. and Europe across Europe suspended some businesses against the Chinese firm.

US technology major Google has suspended some of its businesses with Huawei, cutting off transfer of hardware, software and technical services.

German semicondutor manufacturer Infineon has suspended shipments to Huawei, sparking a sell-off in the technology stocks in Europe.

According to reports, Swiss voters approved an overhaul of the corporate tax code, ending years of wrangling and a failed attempt at an overhaul two years ago. The new system will ensure Switzerland remains a low tax domicile for companies and still is compliant with international rules.

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