Bloomberg News

Swiss Stocks Drop for Second Straight Day, Led by Credit Suisse

January 08, 2012

Jan. 6 (Bloomberg) -- Swiss stocks declined for a second day as concern about how euro-area leaders will stem the sovereign-debt crisis outweighed a better-than-forecast U.S. payrolls report.

Credit Suisse Group AG, Switzerland’s second-largest bank, led a drop in financial shares. Adecco SA, the world’s biggest supplier of temporary workers, increased 2.2 percent.

The Swiss Market Index, a measure of the biggest and most actively traded companies, fell 0.2 percent to 6,013.83 at the close of trading in Zurich, erasing an earlier increase of as much as 0.5 percent. The gauge still posted a 1.3 percent gain this week, a third straight advance. The broader Swiss Performance Index also decreased 0.2 percent today.

“The U.S. can’t exonerate the rest of the world,” said Emmanuel Soupre, who helps oversee $5.7 billion at Neuflize Private Assets in Paris. “The problems in Europe are chronic. Foreseeing an improvement in the U.S. doesn’t mean the improvements will extend beyond America. It’s best to remain cautious.”

U.S. employers added more workers to payrolls than forecast in December and the jobless rate declined to an almost three- year low, showing that the labor market gained momentum heading into 2012.

The 200,000 increase last month followed a revised 100,000 gain in November that was smaller than initially estimated, Labor Department figures showed. The median projection in a Bloomberg survey called for a December gain of 155,000. The unemployment rate unexpectedly fell to 8.5 percent, the lowest since February 2009, while hours worked and earnings climbed.

Fiscal Coordination

German Chancellor Angela Merkel will meet French President Nicolas Sarkozy in Berlin on Jan. 9 to discuss increasing fiscal coordination among euro-area states ahead of the Jan. 30 European Union leaders’ summit.

Swiss consumer prices had their biggest annual drop in more than two years in December as the economy cooled and the franc’s ascent lowered import costs.

Prices slipped 0.7 percent from a year ago, the Federal Statistics Office in Neuchatel said today. That’s the third straight decline and the biggest decrease since October 2009. Economists forecast a drop of 0.6 percent, the median of 13 estimates in a Bloomberg News survey showed.

Credit Suisse lost 1.8 percent to 21.40 francs. Julius Baer Group Ltd. sank 3.5 percent to 35.45 francs, the largest decline since October.

Adecco Advances

Adecco added 2.2 percent to 41.50 francs, the first increase in three days.

Clariant AG jumped 3.2 percent to 10.52 francs, a fifth straight advance to the highest level since August. The maker of plastic additives was added to the European “key calls” list at UBS AG.

Sulzer AG slipped 0.6 percent to 102.40 francs after the maker of pumps was rated “underweight” in new coverage at Barclays Plc.

Kudelski SA sank 8.2 percent to 7.72 francs, the lowest price in three months, as UBS downgraded the shares to “sell” from “neutral.”

--Editors: Andrew Rummer, Will Hadfield

To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net


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