The Swiss stock market pulled back again on Wednesday, adding to yesterday's losses. The market received a slight boost after the German court ruling on the ESM was announced, but those gains were shortlived. Financial and cyclical stocks performed well, but the defensive heavyweights were under pressure.
Germany's top court has cleared the way for the ratification of the European Stability Mechanism, but the court imposed certain conditions, including capping Germany's ESM liability. Investors have now shifted their focus to tomorrow's announcement from the U.S. FOMC meeting and the subsequent press conference from Fed Chairman Ben Bernanke.
The Swiss Market Index fell by 0.21 percent Wednesday and finished at 6,489.80. The Swiss Leader Index declined by 0.24 percent and the Swiss Performance Index lost 0.08 percent.
Financial stocks continued to gain ground Wednesday, adding to their recent strength. Credit Suisse climbed by 4.6 percent and UBS gained 1.9 percent. Julius Baer ended the session higher by 1.5 percent. Insurance stocks were also in demand. Swiss Life climbed by 1.4 percent, Zurich Insurance rose by 1.4 percent and Baloise added 0.7 percent.
The defensive heavyweights all finished in negative territory Wednesday. Roche declined by 0.9 percent and Novartis fell by 0.6 percent. Shares of Nestle also decreased by 0.9 percent. Luxury goods companies Richemont and Swatch were also under pressure. Richemont dropped by 2.4 percent and Swatch lost 1.3 percent.
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