The performance of the leading equity indices was as follows in September 2017: the blue chip SMI index
closed at 9,157.
50 francs while the Swiss SMI index
shwoed a gain of 0.
The Swiss stock exchange's main SMI index
has plunged more than 14 per cent since Thursday's announcement.
Switzerland's benchmark SMI index
declined as much as 14 percent in Zurich.
However, the geopolitics of Ukraine/Russia, banking crises in Portugal, Austria, Italy, deflation risk in the Eurozone on the eve of the ECB stress test and a bias to defensive markets (Switzerland, thanks to the pharma weighting in the SMI index
due to mega caps Novartis and Roche Holdings was the best performing market in Europe during the correction) mean it is premature to expect any bull run in Europe.
Even though only three per cent of German exportsgo to Russia, Germany is dependent on Gazprom for one third of its gas imports So it was no coincidence that German equities fell 12 per cent in late Julyand August, three times the fall in the S&P500 or the Swiss SMI index
, as Frankfurt was the epicentre of a panic sell off in European shares once the West imposed economic sanctions on Russia.
40 Swiss francs a piece in morning trading on a Swiss stock exchange where the main SMI index
was up 0.
2% of total European equity trading at the end of 2010, including new records for the Swiss SMI index
Fears of more asset writedowns at Swiss bank UBS weighed on Europe's stock markets yesterday, leaving Switzerland's benchmark SMI index
in the red, while German and French stocks eked out minor gains.
Daniel Scheibler: The performance of the Swiss SMI index
is traditionally more correlated to the US markets than to other European stock indices.