"While the rollercoaster that is the euro zone continues to keep investors on the edge of their seat, progress is being made, albeit very slowly"
- Bill O'Neill, chief investment officer at Merrill Lynch Wealth Management
Swiss stocks fell on Monday after S&P cut ratings on six European countries and a report showed U.S. retail sales increased less than expected.
The Swiss blue-chip index SMI, a measure of the largest and most actively traded companies shed by 0.22%, or 13.62 points, to 6,163.82. The broader Swiss Performance Index lost 0.18%, or 10.04 points, to 5,589.81.
"The two major issues in Europe today that will prevent any sustainable rally as long as they remain are sovereign debts and an under-capitalized banking system," Stephanie Kretz, an investment strategist at Lombard Odier in London, wrote in a report.
"More liquidity has never turned deficits into surpluses, reduced debt levels or created growth."
"However, it remains too early to sound the all clear."
© Dukascopy Bank