Swiss Stocks Plunge Sharply; SMI Tumbled 3.59%

(RTTNews) - The Switzerland market ended on a dismal note on Friday with stocks falling lower and lower as the session progressed amid fears the U.S. economy could fall into a recession.

The recent weak U.S. manufacturing activity report, and today's data from the Labor Department showing a much less than expected addition of jobs in the month of July, has raised concerns about growth in the world's largest economy.

Investors digested Swiss consumer price inflation data, and a slew of quarterly earnings updates.

The benchmark SMI ended with a huge loss of 441.92 points or 3.59% at 11,875.52. The index, which opened with a big negative gap, touched a low of 11,845.08 in the session.

VAT Group tanked 11.8%. UBS Group plunged 9.5% and ABB plummeted 8.4%. Logitech International tumbled 7.65%.

Holcim, Partners Group and Sika lost 6.6 to 6.9%. Sika said it had acquired chemicals construction company Vinaldom in the Dominican Republic, boosting the firm's presence in the Caribbean.

Kuehne + Nagel ended down 6%, while Geberit, Alcon, Lonza Group, Richemont, Swiss Re and SIG Group fell 4 to 5.4%.

Straumann Holding, Swiss Life Holding, Zurich Insurance, Sandoz Group, SGS, Julius Baer, Sonova, Givaudan, Schindler Ps and Novartis closed down 2 to 3.7%. Swatch Group lost nearly 2%.

Lindt & Spruengli gained nearly 3.4%. Nestle, the only other gainer in the SMI, ended 0.3% up.

Data from the Federal Statistical Office showed Switzerland's consumer price inflation held steady as expected in July. The data said the consumer price index rose 1.3% on a yearly basis, the same as in June. In May, the inflation rate was 1.4%.

The overall inflation was mainly driven by a 3.8% growth in costs for housing and energy. Meanwhile, prices for food and non-alcoholic beverages increased only 0.1%, and clothing and footwear prices were 1.8% less expensive compared to last year.

On a monthly basis, consumer prices dropped 0.2% in July after remaining flat in the prior month. It was the first decline in eight months.