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"We already have an average recession priced into European equities"
- Thomas Haerter, chief strategist at Swisscanto Asset Management AG
Swiss stock gained on Tuesday for the eight consecutive day after Germany and France confirmed their intentions to introduce changes to the EU treaty.
The Swiss blue-chip index SMI, a measure of the largest and most actively traded companies, rose 0.49%, or 28.07 points, to 5,767.93. The broader Swiss Performance Index advanced 0.33%, or 16.99 points, to 5,228.09.
"There are many downgrades waiting and the fact that S&P is saying this shouldn't be a surprise," said Thomas Haerter, chief strategist at Swisscanto Asset Management AG in Zurich.
"There is so much bad news priced into the market that stocks should rise in the absence of more bad news. We already have an average recession priced into European equities."