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Rally Stalls For Swiss Stock Market

The Swiss stock markets headed emphatically south on Wednesday, halting the modest two-day winning streak in which it had advanced more than 35 points or 0.4 percent.

In line with the rest of the European markets, the Swiss bourse opened under pressure and remained that way throughout the session on worrying signs about the health of the global economy.

A slew of Chinese economic data surprised to the downside in July, while German GDP shrank 0.1 percent sequentially in the second quarter, Eurozone economic growth halved in the second quarter and UK inflation accelerated.

Concerns about a potential global recession deepened following news from the United States that the yield on the benchmark ten-year note dropped below the yield on the two-year note earlier this morning - which is widely seen as an indicator of a recession.

The SMI lost 157.76 points or 1.61 percent to finish at 9,628.48 after trading between 9,599.62 and 9,806.50.

On Tuesday, the market had advanced 26.22 points or 0.27 percent to end at 9,786.24.

Among the actives, Swatch Group plunged 3.71 percent, while UBS Group sank 3.68 percent, Credit Suisse retreated 3.54 percent, Lafarge Holcim dropped 2.34 percent, ABB fell 1.86 percent, Roche Holding lost 1.80 percent, Novartis slid 1.16 percent and Nestle was down 0.21 percent.

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