Switzerland GDP Stalls

News Event

From Trading Economics: Switzerland's economy unexpectedly showed no growth on the quarter in the September quarter of 2016, compared to a 0.6 percent growth in the previous three month while market expected a 0.3 percent expansion. While domestic demand supported the economy, the trade balance had a downward effect to growth. Year-on-year, the economy expanded 1.3 percent, slowing from a 2.0 percent growth in the June quarter and below consensus of a 1.8 percent growth. GDP Growth Rate in Switzerland averaged 0.43 percent from 1980 until 2016, reaching an all time high of 2.10 percent in the fourth quarter of 1999 and a record low of -1.90 percent in the second quarter of 1982.

Market Opening Wrap

In Asian Equity Markets Japan's Nikkei index was poised for a weekly gain but fell as investors locked in gains ahead of U.S. jobs data later in the session, with losses kept in check as higher Japanese yields lifted financial stocks. The Nikkei was down 0.5 percent at the end of morning trade at 18,425.45. The broader Topix as well as the JPX-Nikkei Index 400 were both down 0.2 percent at 1,480.79 and 13,287.41 respectively. MSCI's broadest index of Asia-Pacific stocks outside Japan fell 0.6 percent. South Korean stocks lost 0.7 percent. China's CSI 300 index retreated 0.5 percent, shrinking gains for the week to 0.3 percent. Hong Kong's Hang Seng index, which gave up 0.9 percent, is heading for a 0.2 percent weekly loss.

In Currency Markets the dollar eased from a 9-1/2 month high against the yen on Friday, with investors cautious ahead of a looming U.S. jobs report that could set the market's tone in coming days. The greenback fell 0.1 percent against the yen to 114.02 yen. On Thursday, the dollar had risen to 114.83 yen, recording a gain of 13.5 percent from its Nov. 9 trough near 101 yen. The euro inched up 0.1 percent to $1.0670, having gained 0.9 percent so far this week. The pound rose 0.2 percent to $1.2610, having gained 0.7 percent on Thursday when it touched a 2-month high of $1.2696. The dollar index sagged 0.2 percent to 100.86, and was down 0.6 percent for the week.

In Commodities Markets oil prices fell on Friday as some investors opted to cash out after Brent touched 16-month a high on Thursday, with optimism over this week's OPEC-Russia accord on cutting output giving way to questions on the "sticking point" of implementing the deal. International Brent crude oil futures were trading at $53.36 per barrel, down 1.08 percent, from their last close. U.S. West Texas Intermediate futures were at $50.70, down 0.71 percent. Spot gold was up 0.2 percent at $1,173.76 an ounce. Silver was 0.3 percent higher at $16.56 an ounce and platinum was up 0.4 percent at $914.35. Palladium gained 0.6 percent at $754.65 an ounce after scaling its highest level since June 2015 at $774.60 in the previous session.

In US Equity Markets a  sharp decline in technology stocks pulled both the Nasdaq and the S&P 500 indexes into the red on Thursday, while the Dow managed to notch a record closing high with a lift from bank and energy stocks. The Dow Jones industrial average rose 0.36 percent, to 19,191.93, the S&P 500 lost 0.35 percent, to 2,191.08 and the Nasdaq Composite fell 1.36 percent, to 5,251.11. Declines in Facebook, off 2.8 percent, and Microsoft, down 1.8 percent, sent the Nasdaq to its lowest close since Nov. 14, while the S&P 500 technology index fell 2.3 percent. Dollar General lost 5 percent after the discount retailer reported a surprise fall in quarterly comparable sales and tempered its full-year profit forecast.

In Bond Markets U.S. Treasury yields rose on Thursday with benchmark yields touching their highest levels in roughly a year and a half on expectations that gains in oil prices and U.S. President-elect Donald Trump's policies would fuel higher inflation. Benchmark 10-year yields hit 2.492 percent, their highest level since June 11, 2015, while 30-year yields hit a 16-1/2 month high of 3.156 percent. U.S. five-year yields hit a more than 5-1/2-year high of 1.935 percent, while seven-year yields hit a more than two-year high of 2.295 percent. U.S. two-year yields hit just a six-day high of 1.167 percent, while three-year yields hit their highest since mid-February 2011 at 1.469 percent.

Source: Institute of Trading and Portfolio Management