The Swiss Stock Market Rose Sharply After Chinese Interest Rate Cut

(RTTNews) - The Swiss stock market ended Friday's session sharply higher, extending its gains from the previous day. The market got off to a positive start and built on its gains in the afternoon. The unexpected interest rate cut by the Chinese central bank in the afternoon led to an acceleration in the market.

The People's Bank of China cut the one-year lending rate and deposit rate by a quarter-point to 4.35 percent and 1.50 percent, respectively. The latest reduction was the sixth since November last year. The move comes a day after the European Central Bank hinted that further stimulus is coming in December.

The Swiss Market Index increased by 1.38 percent Friday and finished at 8,910.52. The SMI ended the trading week with an overall gain of 2.2 percent. The Swiss Leader Index climbed 1.84 percent Friday and the Swiss Performance Index added 1.37 percent.

Shares of Schindler were in focus Friday. The elevator and escalator manufacturer reported quarterly results that were in line with expectations.

Cyclical stocks benefitted from the unexpected Chinese interest rate cut. ABB advanced 3.1 percent and LafargeHolcim gained 2.5 percent.

Financial stocks also turned in a strong performance at the end of the trading week. UBS increased 2.8 percent and Credit Suisse rose 2.0 percent. Julius Baer also finished higher by 2.5 percent.

The index heavyweights all finished in the green Friday. Novartis rose 1.1 percent and Roche advanced 1.4 percent. Shares of Nestlé also closed up by 0.9 percent.

Aryzta gained 2.7 percent. One of the company's major customers, McDonalds, reported strong quarterly earnings in the U.S. yesterday.

Evolva climbed 3.4 percent after some positive comments from Credit Suisse. Shares of IT logistician So rose 3.5 percent, after having received approval by the European Commission for the acquisition of Polish PC Factory Group.