"People are facing up to the reality of a macro economy that's not good"
- Andreas Utermann, global chief investment officer at Allianz Global Investors
Swiss stocks moved sharply lower on Wednesday, as traders are waiting for Spanish government to present its budget, and U.S. Federal Reserve member, Charles Plosser, said the third round of quantitative easing will not boost the economic growth.
The Swiss blue-chip index SMI, a measure of the largest and most actively traded companies lost 1.10 per cent to 6,540.41. The broader Swiss Performance Index slid 1.12 per cent to 6,044.42.
"Markets have started to turn," said Andreas Utermann, global chief investment officer at Allianz Global Investors. "People are facing up to the reality of a macro economy that's not good. We've seen QE3 and now we're back to the real world. Monetary easing doesn't necessarily produce growth."
"We are unlikely to see much benefit to growth or to employment from further asset purchases," Charles Plosser said in a speech today at the district bank in Philadelphia. "Conveying the idea that such action will have a substantive impact on labor markets and the speed of the recovery risks the Fed's credibility."
© Dukascopy Bank SA