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The fear of the crown has returned to the stock market: the growing number of cases and the fear of a new block are causing investors to flee from equities. The SMI temporarily drops below the 9700 threshold, nearly 2% in the red.
Prior to the opening of the stock market, market watchers expected a technical recovery. This means that the drop in prices in recent days should have attracted bargain hunters. But nothing! Two things could slow the downward trend: no lockdown for the economy in Switzerland and Germany (governments want to provide information on further measures to combat the crown crisis later in the day) and support from central banks. The European Central Bank (ECB) meets on Thursday.
Financials hardest hit
The prices of banks, insurers and so-called cyclicals, that is to say companies highly dependent on economic cycles, are deep red. All SMI stocks are in the red, especially Credit Suisse, which is losing nearly 5% in value. He is followed by Swiss Life and UBS. Swiss Re, LafargeHolcim and Zurich also lose more than three percent.
Even the positive news does not protect against price losses: Novartis loses about 1.9 percent, although the pharmaceutical giant is now more actively involved in the fight against Covid-19 through a collaboration with Molecular Partners. The two companies want to work together on so-called DARPin therapies. (koh)
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