"The fiscal-cliff issue is more about increasing taxes and not about reducing spending"
- Andreas Nigg, head of equity and commodity strategy at Vontobel Asset Management
Swiss stocks turned lower on Thursday, dragged down by disappointing data from the eurozone and the U.S., which added to signs that the global economy is slowing. President Barack Obama is negotiating with Congress to reach a deficit-reduction deal, while the unemployment claims surged to the highest level since April 2011. In the meanwhile, eurozone economy entered its second recession in four years.
The Swiss blue-chip index SMI, a measure of the largest and most actively traded companies, tumbled 1.53 per cent to 6,574.56. The broader Swiss Performance Index fell 1.43 per cent to stand at 6,048.40.
"The fiscal-cliff issue is more about increasing taxes and not about reducing spending," said Andreas Nigg, head of equity and commodity strategy at Vontobel Asset Management in Zurich. "Even if a compromise on the cliff is found, it most likely won't be until December, leaving November vulnerable."
"The economic reports were a mixed bag today, but the market probably doesn't care about that at the moment," said James Gaul, a portfolio manager at Boston Advisors LLC.
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