Swiss stock markets rally after taking a hit
After suffering a sharp down-turn, Swiss stock markets are back on track due to interest rate cuts by the US Federal reserve.
22 January 2008
ZURICH - The Swiss stock market bounced backed from an early low Tuesday, fueled by news that the US Federal Reserve has cut key interest rates by a three-quarter percentage point.
The blue-chip SMI lost 4.5% in the first minutes of trading and fell below the psychologically important 7,000-mark on fears of a US recession, but ended the day up 2.76% at 7,487.92.
Among the biggest winners of the day were Switzerland's largest bank UBS AG and specialty chemicals maker Clariant AG, whose stock prices jumped over 9% and 7%, respectively.
Shares in Swiss Reinsurance Co. also rose by more than 7%, a day after the world's biggest re-insurer saw some 10% wiped off the value of its stock.
The broader SPI index closed up 2.64 percent at 6,074.62 points.[Copyright ap 2008]