Swiss Stocks Plummet on Fears of New Financial Crisis
Swiss stocks concluded the day in the red, with banking and financial stocks taking a hit due to fears of a new financial crisis. The leading index SMI closed 0.45% lower at 12,644.49 points, despite Nestlé's strong performance.
The day's trading was marked by heavy selling of banking and financial stocks, driven by concerns about a potential US banking crisis. This reminded investors of the 2023 crisis. The volatility index VSMI, or 'fear gauge', surged by over 16% at times, reflecting the market's anxiety.
The SMI initially dipped to 1.3% below its opening level but managed to close 0.45% lower, thanks in part to Nestlé's strong showing. The company's robust recovery was attributed to the positive reception of measures announced by its CEO Mark Schneider. Other stocks, however, struggled, with 24 out of 30 top stocks closing in the red. Financial stocks, including Partners Group, UBS, and Julius BÀr, all fell sharply throughout the day.
Markets initially panicked due to credit losses by two US regional banks. However, the situation calmed later in the day, limiting the decline in the SMI, which still posted a weekly gain of 1.3%.
Despite the day's losses, the SMI managed to post a weekly gain, largely due to Nestlé's strong performance. The market's volatility, however, remains high, with investors keeping a close eye on developments in the US banking sector.
Read also:
- Shuwaikh Beach Cleanliness Plan Launched, 600+ Bags of Garbage Removed
- Next Gen GST Drives Indian Auto Sales to Record Highs During Festive Season
- Elliott vs. Stronghold: Hedge Fund Alleges Improper Expense Overcharging in Legal Battle
- Dutch Designer Niels van Roij Unveils 'Henry II', a Bespoke 1981 Rolls-Royce Corniche
