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Equities Switzerland with recession worries very weak

DJ shares Switzerland very weak with recession worries

ZURICH (Dow Jones) — The Swiss stock market ended trading on Thursday with a sharp drop. Above all, concerns about a recession spread among investors. This had led to a midweek sell-off on Wall Street. Fed President Jerome Powell recently stressed that the Fed’s determined fight against inflation could be painful for Americans. He signaled that the US Federal Reserve would also accept higher unemployment.

Fewer and fewer market participants are assuming that the Fed’s sharp interest rate hikes to combat inflation will not cause an economic downturn. The Swiss stock market was also unable to escape this, it was said.

The SMI fell to its lowest level since early March, when the Ukraine war began. The index finally lost 2.3 percent to 11,309 points. All 20 SMI values ​​closed with losses. 41.94 (previously: 34.9) million shares were traded.

In terms of individual stocks, Julius Baer shares (-5.9%) came under selling pressure. The bank’s new financial targets, while good, are too far in the future to support the course, it said. The analysts from RBC evaluated the presented business figures differently: In the short term there is headwind, in the medium term there are some growth drivers. UBS and CS Group shares were down 1.4 and 1.7 percent, respectively.

Clariant stocks held up slightly better than the overall market at a discount of 1.3 percent. The chemical company gave a very optimistic outlook for the current year in the final annual figures for 2021, according to the trade. Clariant speaks of the expectation of “strong” growth in 2022 and “particularly strong” in the first half of the year. At the same time, margins should increase in all areas.

Duty-free shop operator Dufry has presented decent business figures and optimistic forecasts. However, the shares lost 5.8 percent with the recession worries. “The post-corona recovery is also clearly evident here,” said one participant. At the end of March, 85 percent of the shops were open again, which represents around 90 percent of the sales potential from 2019. In the outlook, Dufry speaks of a continuation of the positive trend.

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(END) Dow Jones Newswires

May 19, 2022 11:43 ET (15:43 GMT)

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