Swiss markets slightly in red on data, earnings

Thursday, 18. February 2016 10:23

The Swiss Market Index fell 0.56% at 7,901 in the morning trade (10:21 a.m. CET), as the new data have shown a decline in imports and exports in the last month.

Financial sector was leading in gains, with Swiss RE, UBS Group and Julius Baer adding 0.82%, 0.73% and 0.49%, respectively.

Nestlé SA was leading the losers, with drop of 3.71% after the Vevey-based reporting slower increase in sales, complaining the troubles in the emerging markets. Investors were carefully making their cup of Nescafé, while suspiciously looking at prospects of lifting up the 2015 annual profits of 9.1 billion francs (€8.15 billion, $9.18 billion) in the next year.

Exports from the Switzerland contracted by 0.9% in nominal value (and was down 3.9% in real value) in January. The imports declined by 2.8% in nominal and 5.0% in real value, in a month-on-month scale.

The exports mostly suffered due to a plunge of 11% in the machinery, and 8% in particularly sensitive watchmaking sector, but were supported by a whopping 24% rise in sales of jewellery and bijouterie.

Exports were 5% lower in the Asian markets, but the real fall was in Latin America (-16%), while trades with the North America increased by 3%, and Europe rose slightly, just 1%, according to data from the Federal Customs Administration published on Thursday.

In annual terms, the exports from the Alpine republic rolled down 1.0%, reaching a total of 16.3 billion francs (€14.76 billion, $16.44 billion), in the year ending in January. The imports were 2.8% weaker, with a total of 12.8 billion francs (€11.59 billion, $12.91 billion).

The Swiss franc was trading 0.02% lower against the euro, 0.14% lower against the pound, 0.08% against the U.S. dollar, and 0.02% against the yen at 10:21 a.m. CET.

Related Links: Nestlé SA
Breaking the News / ZR