The Swiss Stock Market Dropped Amidst Global Equity Sell-Off

(RTTNews) - The Swiss stock market ended Wednesday's session to the downside. The market got off to a weak start and declined further in the afternoon. Despite yesterday's attempt at stabilization, the SMI has lost about 200 points since the start of 2016.

Global markets were under pressure due to various geopolitical concerns. Disappointing service sector data from China raised further concerns over the health of its economy. China's central bank also set the central parity rate for yuan at 6.5314 per dollar, compared to Tuesday's reference rate of 6.5169. North Korea claims that it has successfully tested its first hydrogen bomb and tensions between Iran and Saudi Arabia continue to flare.

The Swiss Market Index decreased 1.01 percent Wednesday and finished at 8,613.42. The SMI hit an intraday low of 8,560 points. The Swiss Leader Index declined 1.10 percent and the Swiss Performance Index lost 1.04 percent.

The biggest decliner today was Transocean. Crude oil prices dropped after Saudi Arabia slashed prices for European customers in a bid to hurt Iran.

Cyclical stocks were also under pressure Wednesday. Clariant dropped 3.1 percent, while Kuehne + Nagel weakened by 2.1 percent. SGS fell 2.1 percent and Adecco lost 1.6 percent.

Concerns over the Chinese economy weighed on shares of the luxury goods companies. Swatch surrendered 1.5 percent and Richemont decreased 1.9 percent.

Actelion weakened by 1.7 percent. The stock was up sharply yesterday after the pharmaceutical company held a conference call to discuss its newly approved in the US drug Uptravi.

The index heavyweights all finished in the red Wednesday. Roche declined 1.2 percent and Novartis fell 0.6 percent. Shares of Nestle also finished lower by 1.0 percent.

The insurance stocks were also under pressure. Swiss Life dipped 0.2 percent and Zurich Insurance lost 0.3 percent. Baloise fell 0.3 percent and Swiss Re weakened by 0.4 percent.

Galenica advanced 0.3 percent on speculation that it will replace Transocean in the Swiss Market Index soon.