Swiss Stock Market Falls After US Election Euphoria, Digi Mart USA News: The Swiss stock market closed moderately lower on Thursday after a directionless trading session. Thanks to its defensive stocks, the local market held up relatively well compared with international markets.
“After the election euphoria comes disillusionment,” one market observer commented. Investors were increasingly concerned about the possible consequences of potential regulatory tightening in the United States affecting the construction of data centers.
Geopolitical risks in the Middle East, along with concerns about inflation and interest rates, also weighed on the market. Attention now turns to the US employment report due at the end of the week.
The Swiss Market Index (SMI) lost 0.4 percent to 14,967 points. Earlier in the morning, it had reached a record high of 15,092 points.
European exchanges were mixed, with markets in Germany and Britain falling while the benchmark index in France rose slightly. US stock markets were deep in negative territory in the evening.
The largest losses came from ABB, which fell 4.2 percent. Chinese authorities have blocked the planned sale of ABB’s robotics division to SoftBank, jeopardizing the multibillion-dollar transaction.
Technology stocks also declined sharply. Logitech fell 3.3 percent, VAT dropped 3.5 percent, Comet lost 6.3 percent and Inficon fell 7.5 percent.
UBS shares lost 3.4 percent after having risen strongly the previous day.
Defensive stocks were in demand. Nestlé gained 1.6 percent, while insurers and reinsurers also attracted buyers.
Swiss Re rose 2.0 percent after better-than-expected earnings and at one point reached a new multi-year high of 160.45 Swiss francs.
Swisscom gained 3.3 percent following its results and also hit a new high at 734.50 Swiss francs.
