Swiss resilient to Bad Economic data

The Franc remained mixed and continued to trade in its tight range even after the leading economic indicator came out below expectations. The Swiss stock markets decline was lead mostly by fall in the chemical and financial stocks. Bonds performance on the other hand was mixed.


President Chavez not to visit Switzerland in July:
Venezuelan President Hugo Chavez changed his mind and will not head for Switzerland next July, as initially scheduled, for “troubles with the agenda,” confirmed Tuesday a spokesperson of the Swiss Ministry of Foreign Affairs.
Source: El Universal
Credit line buoys up Swiss merchant navy:
The Swiss government wants to make sure the country’s merchant navy stays afloat and has decided to boost its financial guarantee to SFr1.1 billion ($890 million). The cabinet said on Wednesday that the SFr500 million increase will ensure that vital supplies would still make their way into the country if a major crisis broke out.
Source: Swissinfo

Swiss temperatures rise at twice the average:
Temperatures in Switzerland have risen at twice the northern hemisphere average since the 1970s. In particular, springs and summers have become significantly warmer, according to Swiss researchers, who are calling for urgent measures against global warming and its consequences.
Source: Swissinfo

Currency Market:
The Swiss franc was mixed versus its major counterparts today. It moved higher against the sterling but fell versus the yen. Meanwhile, the franc was mostly flat in trading with the greenback and Euro. A weak KOF Leading Indicator was not able to shift investors? opinion. As of 12:00pm the USDCAD pair was trading at 1.2292. The central bank remains firm on its opinion of raising rate. While this will not likely hit the market until the usual quarterly report in September speculation of a 50 basis point hike or even Swiss Bank?s intervention could tide price action over.

Equity Market:
Swiss share prices again closed lower today with chemicals and financial stocks among the biggest decliners. The Swiss Market Index was down 47.51 resting at 9,025.82. Leading the downfall was Adecco declining 1.78 percent to 93.55 sfr. Pharmaceutical companies helped slow the pace of the decline due to increased merger speculation in this industry. The Pharma group said today that it has made an official offer to takeover VEntana Medical Systmes Inc. Alternatively, the top climber was Nobel Biocare rising 1.4 percent at 392 sfr.

Fixed-Income Market:
Yields on the benchmark 10-year bond fell in the beginning of the day but were mixed through the waning hours of the active session. Yields ended the day 0.014 percent (lower/higher) at 3.163.