The Swiss Stock Market Pulled Back After Fed Left Rates Unchanged

(RTTNews) - The Swiss stock market ended a volatile trading session Friday with a significant decline. Concerns over the health of the global economy weighed on investors at the end of the trading week, after the U.S. Federal Reserve decided to maintain its interest rate at record lows.

The Fed cited concerns over global economic headwinds, volatility in the stock market and anemic inflation for their decision not to move on interest rates. Most Fed officials have said that a rate hike would be appropriate this year given the recent pace of economic activity. Analysts are now of the opinion that a rate hike will come in December, but October also remains a possibility.

The Swiss Market Index dropped by 1.25 percent Friday and finished at 8,739.22. The SMI ended the trading week with an overall decrease of 0.4 percent. The Swiss Leader Index fell by 1.45 percent and the Swiss Performance Index lost 1.10 percent.

The financial stocks were under pressure after the Fed decision. Credit Suisse declined by 4.0 percent and UBS weakened by 3.0 percent. Julius Baer also tumbled by 2.6 percent.

Among the insurers, Swiss Life decreased by 2.3 percent and Zurich Insurance weakened by 1.7 percent. Baloise fell by 1.9 percent and Swiss Re finished down by 1.0 percent.

Cyclical stocks were also under pressure Friday. Transocean sank by 6.2 percent, due to falling crude oil prices. LafargeHolcim dropped by 2.5 percent, ABB lost 3.3 percent and Adecco fell by 3.0 percent.

Galenica was one of the few positive performers at the end of the week. The stock finished with a gain of 0.6 percent. Swisscom rose by 0.1 percent, while Actelion finished unchanged.