Losing Streak Continues For Swiss Stock Market

(RTTNews) - The Swiss stock market was down again on Thursday, spending the entire session in the red and tracking the major European bourses to the downside.

The SMI has now fallen lower in five straight sessions, slumping more than 450 points or 3.8 percent in that span.

The widening conflict between Israel and Iran has rattled investors as a major hospital in southern Israeli sustained extensive damage and injuries were reported in a series of Iranian missile attacks. Israel has said it will intensify strikes in retaliation.

For the day, the index shed 87.95 points or 0.74 percent to finish at 11,871.52 after trading between 11,830.12 and 11,931.12.

Among the actives, Adecco Group stumbled 4.79 percent, while Compagnie Financiere Richemont tanked 2.65 percent, UBS Group retreated 1.79 percent, Nestle slumped 0.92 percent, ABB dropped 0.89 percent, Julius Bar Gruppe sank 0.54 percent, Swisscom lost 0.53 percent, Zurich Insurance fell 0.43 percent, Roche Holding rose 0.35 percent, Swiss Re slipped 0.33 percent, Novartis added 0.25 percent and Swiss Life eased 0.15 percent.

In economic news, the Swiss National Bank reduced its policy rate by a quarter-point, citing easing inflationary pressures. The bank lowered the SNB policy rate by 0.25 percentage points to zero percent. This was the sixth straight reduction.

Following the strong growth in the first quarter, the bank forecast economic growth to slow again and remain rather subdued over the remainder of the year. The bank expects the economy to grow in the range of 1 percent to 1.5 percent in 2025.

SNB Chairman Martin Schlegel stated that low inflation and mild price pressures had influenced the decision to cut rates, and that the bank will make its next move in September.

Also, the Federal Customs Administration said that Switzerland's foreign trade surplus decreased in May as exports plunged amid an increase in imports. The trade surplus dropped to CHF 1.98 billion in May from CHF 5.43 billion in April.

In real terms, exports fell sharply by 10.2 percent over the month, faster than the 3.7 percent decline in April. Meanwhile, imports rebounded 0.5 percent after a 10.4 percent slump in the prior month.