"We think they are going to want to bring this percentage down in the weeks ahead and their selling of euros against most major currencies other than the dollar could gather pace"
- Ned Rumpeltin, strategist at Standard Chartered Bank
Economic sentiment in Switzerland improved more than initially expected in October, while still remains in negative territory, the Centre for European Economic Research reported Wednesday. The survey for October climbed 6 points and came in at minus 28.9, up from minus 34.9 in the previous month, beating analysts' expectations of a 2.9 points increase.
"The Swiss economy will have to get used to a weaker economic momentum," said VP Bank economist Bernd Hartmann. "There is a lack of fresh impulses in the shape of investments despite record low interest rates. The question is: Where is growth in the near future supposed to come from?"
"There is a slight tendency higher to a positive area. However, this doesn't mean the SNB has reason to act. It simply means the 1.20 floor installed over one year ago has succeeded in warding off the threat of a deflationary spiral," said David Marmet, an economist at Zuercher Kantonalbank.
The Swiss blue-chip index SMI, a measure of the largest and most actively traded companies, advanced 0.18 per cent to 6,786.40. The broader Swiss Performance Index rose 0.22 per cent to 6,254.77.
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