The Swiss Stock Market Dropped On Weak Chinese Data

(RTTNews) - The Swiss stock market ended Tuesday's session with a significant decline, after disappointing manufacturing from China sparked a global sell-off. The Swiss stock market got off to a weak start and extended those losses in early trade. The market stage a bit of a recovery around midday, but slipped right back to near session lows after the unexpected drop in U.S. manufacturing data.

Chinese manufacturers reported the sharpest deterioration in operating condition in more than six years in August. The manufacturing Purchasing Managers' Index fell to 47.3 in August, which was the lowest reading since March 2009, survey data from Caixin Insight Group and Markit showed Tuesday. The sector has been contracting for six successive months. The reading was above the flash score of 47.1 but was down from 47.8 in July.

The Swiss Market Index dropped by 2.30 percent Tuesday and finished at 8,621.27. The Swiss Leader Index declined by 2.14 percent and the Swiss Performance Index lost 2.21 percent.

The index heavyweights all suffered heavy losses Tuesday, which pressured the overall market. Shares of Nestle fell by 1.7 percent. Novartis tumbled by 3.2 percent and Roche weakened by 2.5 percent. Rounding out the pharmaceutical stocks, Actelion decreased by 2.4 percent.

Cyclical stocks were also under pressure Tuesday. Lonza declined by 3.0 percent, LafargeHolcim lost 2.9 percent and Adecco surrendered 2.6 percent. Givaudan weakened by 1.9 percent and even a defense play, Swisscom fell by 2.4 percent.

Financial stocks were not immune to the selling pressure. Credit Suisse dropped by 3.2 percent Julius Baer tumbled by 2.9 percent and UBS lost 2.0 percent. Zurich Insurance finished down by 2.2 percent and Swiss Re closed lower by 2.0 percent.

Syngenta ended the session with a loss of 0.9 percent. The company announced that it has received approval from the U.S. EPA for its SDHI fungicide Solatenol. The agrochemical company expects its first significant sales in the U.S. in the 2016 growing season.