STOCK MARKET WATCH -- Tuesday, 2 September 2014

[xchrom]

45. Swiss Economy Unexpectedly Stalls as Euro Area Takes Toll

http://www.bloomberg.com/news/2014-09-02/swiss-gdp-unexpectedly-stagnates-as-euro-area-leaves-mark.html


The Swiss economy unexpectedly stalled in the second quarter as stagnating growth in the euro area hurt exports.

Swiss gross domestic product was unchanged in the three months through June from the previous quarter, when it expanded 0.5 percent, the State Secretariat for Economic Affairs in Bern said in a statement today. That’s the weakest quarterly reading in two years and compares with a median estimate for 0.5 percent growth in a Bloomberg News survey of 16 economists.

The Swiss National Bank’s three-year-old cap on the franc has helped the economy outperform that of the euro area in nine of the last 12 quarters. With conflicts between Russia and Ukraine, as well as in the Middle East, putting a strain on global growth, SNB President Thomas Jordan yesterday reaffirmed the ceiling’s importance to ward off economic risks.

“Unfortunately, one must conclude that the Swiss economy has taken a step back -- if not two,” said Felix Brill, senior economist at Wellershoff & Partners Ltd. in Zurich. “My big concern is that the domestic economy has lost momentum faster than expected.”