(AWP / Reuters / SPU) Investors were still nervous for a long time at the beginning of the week, but buyers dominated towards the end of trading. For the Swiss stock market, this meant a trip up and down in early trading, while it ended up closing relatively comfortably in positive territory. The Swiss Market Index SMI (SMI 9174.39 1.98%) gained 0.8% at the opening. A few minutes later, however, it was in the red. In the morning he contained his loss. In the afternoon, it showed a plus when Wallstreet opened and rose above the 9100 mark.
The Dax showed a clear increase of almost 2% (DAX 9815.97 1.9%) in Frankfurt. The stock markets in New York rose clearly. The three main indices are up in Zurich at the end of trading. The Dow Jones (Dow Jones 22327.48 3.19%) advanced 2.5%. The broader S&P 500 (SP500 2626.65 3.35%) also gained 2.5%. The index of the technology exchange Nasdaq Composite rose 3%.
According to traders, despite the advances, concerns about the economic consequences of the corona crisis also increased. Although governments and central banks have already announced and put together measures and billions of aid packages, the question remains as to whether all this will be enough, it was said on the dealers’ side. After all, nobody can estimate how the global restrictions and closures would affect economic performance. Accordingly, most experts now assume that there will be a recession in the first half of the year. A lot of data released later this week should give an idea of what to expect. Accordingly, investors are likely to remain nervous, which in turn suggests that volatility in the financial markets will continue.
President Donald Trump said he will extend the guidelines for slowing the spread of the coronavirus until April 30. Originally, he had planned the measures until the Easter weekend. Trump added that the Corona virus deaths could peak around Easter.
ABB under pressure
ABB was in the SMI (FIG 16.64 -5.78%) the clear losers. Due to the corona virus pandemic, the technology group expects the first quarter to show signs of slowing down. For 2020 as a whole, he no longer made any outlook. The Board of Directors and the Executive Committee are waiving 10% of their compensation. ABB was also traded ex dividend (CHF 0.80 / share) on Monday.
The pharmaceutical heavyweights provided a boost, especially Roche (ROG 308.8 4.1%), but also Novartis (NOVN 77.8 2.37%). The third heavyweight Nestlé (NESN 99.8 2.42%) also closed in plus. Other defensive stocks such as Alcon were clearly firmer (ALC 48,735 8.06%), Swisscom (SCMN 536 4.08%) and Lonza (LONN 393.8 3.14%).
Meanwhile, UBS confirmed (UBSG 9,064 -0.07%) their planned dividend payment. Despite the corona crisis, the big bank does not waive the distribution. The shares did not break down until late. Credit Suisse (Credit Suisse 7,998 -0.67%) lost easily. The insurers around Swiss Re (SREN 70.3 -0.54%) and Swiss Life (SLHN 323.4 0.43%) were able to contain their losses. Financial stocks had risen particularly sharply in the past week. Zurich Insurance (Angry 332.4 2.78%) showed the greatest gains in this sector.
Schindler burdened, Sunrise clearly higher
In the SMIM (SMIM 2152.508 0.78%) Schindler’s papers went down after the forecast was lowered. The elevator and escalator manufacturer reduced its sales and earnings targets due to the effects of the corona crisis.
With Dufry (DUFN 29.93 -0.1%) and Zurich Airport (FHZN 104.8 -6.6%) the main victims of the corona crisis gave in again. Health stocks such as Sonova were also weaker (SOON 172.5 0.23%) or Vifor Pharma (VIFN 127.35 -2.53%).
Overall, there was a friendly trend in technology stocks. Logitech (LOGN 41.33 4.77%) showed a clear plus, while AMS (AMS 9,228 -1.3%) and Temenos (TEMN 123.5 2.36%) stay behind.
Sunrise fell with profits (SRCG 79.65 5.92%) in addition to Swisscom, this telecom value also increased significantly. With VAT Group (VACN 132.3 5.25%) and OC Oerlikon (OERL 7.5 2.39%) stocks from the industrial sector also rose significantly.
Landis + Gyr (COUNTRY 64 -3.4%) as well as Bossard (BOSN 105.7 -1.12%) avoided after these companies also reported that they expected negative effects of the corona crisis.
When looking at the back rows, Komax still stood out (COMN 148.5 -2.3%) or also autoneum (AUTN 57.35 -2.22%) with above-average price losses. Here, traders refer to analysts’ comments on the one hand, but also to the generally weak sector after some European competitors came up with weak news in the morning.
Losses on Asian exchanges
Asian equity markets slid again on Monday due to fears of the duration and intensity of the corona crisis. Despite central bank efforts, investors were concerned that the closures would do huge damage to economies globally. The 225 Nikkei index in Tokyo was 3.5% lower. The broader Topix fell 3.8%. Hang Seng lost 1.3% in Hong Kong. In Seoul, South Korea, Kospi was able to keep losses within limits with –0.6% and in Taiex in Taiwan with –0.4%. Mainland China stock exchanges were also lower. The Shanghai Composite was 1.6% in the red. The key companies in Shanghai and Shenzhen lost 1.4%
Euro under 1.06 Fr.
The euro fell against the dollar on Monday. It was trading significantly lower at $ 1,1030 at 5:30 p.m. CEST. At the end of the week, it had risen sharply and temporarily exceeded the $ 1.11 mark. The common currency against the Swiss franc had already weakened in the course of Friday trading and fell again below CHF 1.06. At a recent level of CHF 1,0585, he made up for the interim losses. The dollar rose clearly and stood at CHF 0.9595.
Oil price clearly lower
The oil price fell significantly at the start of the week due to the economic consequences of the corona pandemic. The price for a barrel (159 liters) of the North Sea variety Brent (Brent 22.74 -2.99%) sank last night to its lowest level since November 2002, when oil prices had been under pressure as a result of the September 11, 2001 terrorist attacks. On the supply side, there is currently also a price war between Saudi Arabia and Russia, which is putting an additional burden on the oil price. The Brent price is below $ 22 at the close of trading in Europe. This means that the price of Brent oil has declined by almost 60% since February 24, when the rapid spread of the novel corona virus has fully affected the financial markets.
gold (gold 1622.94 -0.28%) lost slightly but managed to stay above the $ 1600 mark. The precious metal was trading at $ 1617 per troy ounce.
– .
