© Dukascopy
|
"With the current interest-rate level, Italy is not going to be able to brace the burden of interest"
- Kai Fachinger, fund manager at SAM
Swiss stocks closed lower on Wednesday as yields on Italian government bonds rose to a record, fuelling worries Europe's debt crisis is spreading. The Swiss blue-chip index SMI, a measure of the largest and most actively traded companies, lost 1.32%, or 74.80 points, to 5,607.85. The broader Swiss Performance Index erased 1.35%, or 69.88 points, to 5,105.57.
"With the current interest-rate level, Italy is not going to be able to brace the burden of interest, even with austerity measures," said Kai Fachinger, fund manager at Sustainable Asset Management AG in Zurich. "The decisions taken won't be enough to avoid a domino effect on Italy."
Centre for European Economic Research (ZEW) is to announce its economic expectations index next Thursday.