The Swiss Stock Market Dropped Sharply On Chinese Worries

(RTTNews) - The Swiss stock market ended Wednesday's session with a significant decline. Growing concern over China's economy continued to weigh on investor sentiment. The continued decline of many commodity prices also fueled worries about a global economic slowdown. The weak performance of the U.S. markets also contributed to the negative mood among investors.

Uncertainty ahead of the release of the minutes from the most recent Federal Reserve policy meeting also had investors playing it cautious. Investors will be watching for any clues regarding whether the Fed will begin raising interest rates at its next meeting in September.

The Swiss Market Index decreased by 1.41 percent Wednesday and finished at 9,251.60, which was just off the session low of 9,247 points. The Swiss Leader Index dropped by 1.57 percent and the Swiss Performance Index lost 1.35 percent.

Cyclicals were among the weakest performing stocks today. Transocean sank by 3.9 percent and Clariant surrendered 3.2 percent. LafargeHolcim dropped by 2.8 percent and Sika weakened by 2.3 percent. Concerns over China also weighed on the luxury goods companies. Swatch declined by 2.1 percent and Richemont lost 1.6 percent.

Swisscom decreased by 2.5 percent. The company reported sales for the first half of the year that were slightly above expectations. However, its profit for the first half was slightly weaker than anticipated.

Syngenta fell by 1.6 percent. The agrochemical company announced that it plans to sell Syngenta Flowers.

Financial stocks were also under pressure Wednesday. UBS declined by 1.8 percent and Credit Suisse lost 1.4 percent. Swiss Re dropped by 1.1 percent and Zurich Insurance weakened by 1.5 percent.

The index heavyweights all finished to the downside, which pressured the overall market. Novartis sank by 1.5 percent and Roche surrendered 1.3 percent. Shares of Nestle also finished lower by 0.7 percent. Roche announced the purchase of U.S. company Kapa Biosystems.