"It was a strong signal from the Fed and a very welcome move ..."
- Mike Lenhoff, chief strategist at Brewin Dolphin Securities Ltd.
Swiss stocks edged higher on Friday, as the Federal Reserve announced a fresh round of quantitative easing to shore up U.S. economic growth. On Thursday, the Fed said that it would buy $40 billion of mortgage-backed securities every month and would keep buying them until the labour market improves.
The Swiss blue-chip index SMI, a measure of the largest and most actively traded companies edged higher 0.36 per cent to 6,513.22. The broader Swiss Performance Index climbed 0.36 per cent to 6,038.72.
"It was a strong signal from the Fed and a very welcome move but we'll have to wait and see if this is more than a one or two-day wonder for the market," said Mike Lenhoff, chief strategist at Brewin Dolphin Securities Ltd. in London. "All of this central-bank policy removes a degree of uncertainty that has been plaguing markets."
"With a strong commitment from the Fed, progress in Europe and the passing of the U.S. election, the U.S. economy will have a pretty decent shot at achieving above-trend growth in 2013," said Julia Coronado, an economist at BNP Paribas.
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