The Swiss Stock Market Pulled Back After Recent Gains

(RTTNews) - The Swiss stock market finished solidly in negative territory Wednesday. The pull back was attributed to profit taking, following the gains of the previous two sessions. The gains at the start of the trading week were fueled by the belief among investors that the Federal Reserve will not raise interest rates at its upcoming meeting.

Investors continue to struggle with the uncertainty surrounding the "Brexit" issue, ahead of the referendum on June 23. There was no help to be found from the U.S. in the afternoon. U.S. The U.S. markets have been relatively flat since trading began today, with no economic data to drive the direction of trade.

The Swiss Market Index decreased 0.88 percent Wednesday and finished at 8,143.76. The Swiss Leader Index dropped 0.78 percent and the Swiss Performance Index lost 0.85 percent.

The insurance stocks were under pressure Wednesday. Baloise dropped 1.8 percent and Swiss Life fell 1.6 percent. Swiss Re weakened by 1.3 percent and Zurich Insurance surrendered 1.1 percent.

Dufry was another notable decliner, with a loss of 1.7 percent. Givaudan forfeited 1.4 percent and Adecco fell 1.3 percent.

The weak performance of the index heavyweights also weighed on the overall market. Roche and Novartis both declined by 1.3 percent. Roche announced that it has received EU approval for Avastin, in combination with Tarceva, for the treatment of a specific type of lung cancer. Nestle also finished the day with a loss of 0.7 percent.

Swisscom decreased 1.0 percent. There were reports that the company is among the bidders for some available Italian mobile assets, as VimpelCom and CK Hutchison Holdings attempt to win regulatory approval for their proposed merger.

The luxury goods companies bucked the overall trend of the session, finishing solidly in the green. Richemont climbed 1.7 percent and Swatch added 1.2 percent. The stocks benefitted from the latest trade data from China.