The Swiss National Bank surprised markets on Thursday and abandoned its fixed peg against the Euro. Moving ahead of an anticipated move by the European Central Bank to quantitatively ease, the SNB felt it could no longer enforce that line, sending the Franc 14 percent higher.
Equities on the SIX Swiss Exchange were down sharply. However, for Swiss ADRs trading in the U.S., this is causing large price jumps – the result of a sharply lower Franc.
|
Equity |
Wednesday Close |
Premarket |
Percentage Change |
|
Syngenta SYT |
65.11 |
68.75 |
+ 5.6% |
|
UBS Group UBS |
16.48 |
16.97 |
+ 3% |
|
Novartis NVS |
96.81 |
102.00 |
+ 5.4% |
|
Logitech International LOGI |
13.25 |
14.02 |
+ 5.8% |
|
Credit Suisse Group CS |
22.81 |
23.42 |
+ 2.7% |
|
Roche Holdings Group RHHBY |
35.19 |
37.74 |
+ 7.24% |
The higher Franc is likely to make it more challenging for Swiss companies to do business internationally. That could ultimately mean lower long-term values.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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