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The fear of the crown is back on the stock exchanges: the increasing number of cases and the fear of a new lockdown are causing investors to flee the shares. The SMI temporarily falls below the 9700 mark and is almost two percent in the red.
Market watchers expected a technical recovery ahead of the stock market opening. This means that the fall in prices of the last few days should have attracted bargain hunters. But nothing! Two things could stop the downward trend: there are no lockdowns for the economy in Switzerland and Germany (governments want to provide information on new measures to combat the crown crisis later in the day) and support from central banks. The European Central Bank (ECB) meets on Thursday.
Finances most affected
The prices of banks, insurers and so-called cyclicals, that is, companies that are highly dependent on economic cycles, are bright red. All of SMI’s shares are in the red, especially Credit Suisse, which is losing nearly five percent in value. Swiss Life and UBS follow. Swiss Re, LafargeHolcim and Zurich also lose more than three percent.
Even 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)
