The Swiss stock market finished in negative territory on Thursday, turning in the first loss for the market this week. Investors were put into a negative mood after Moody's Investors Service downgraded Spain and Cyprus. The continued rise in the yields on Spanish and Italian government bonds also contributed to the negativity.
The Swiss Market Index fell by 0.61 percent Thursday and closed at 5,908.51. The Swiss Leader Index lost 0.77 percent and the Swiss Performance Index declined by 0.66 percent.
The Swiss National Bank on Thursday decided to retain the exchange rate cap and the near-zero interest rate. The bank also noted that it "will not tolerate" further gains in the currency and is prepared to take necessary measures at any time.
The Swiss National Bank has recommended that UBS continue with its capital strengthening process. The SNB expects Credit Suisse to accelerate its process and take all action necessary to expand its loss-absorbing capital base significantly during the current year. UBS fell by 0.3 percent Thursday and Credit Suisse declined by 10.5 percent.
Cyclicals were also weak Thursday, with the exception of Logitech, which gained 2.1 percent. Richemont fell by 1.7 percent and ABB lost 1.2 percent. Schindler declined by 1.1 percent and Holcim dropped by 1.4 percent.
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