The Swiss Stock Market Climbed On Hopes Fed Will Hold Off

(RTTNews) - The Swiss stock market ended Monday's session with a significant increase. The market got off to a strong start and managed to extend its gains in the afternoon, following the open of the U.S. equity markets.

Most analysts are predicting that the Federal Reserve will leave interest rates at record lows later this month, due to Friday's disappointing U.S. employment report. Today's weaker than expected U.S. service sector data helped to reinforce the theory. However, a rate hike in December remains a possibility.

The Swiss Market Index rose 2.65 percent Monday and finished at 8,740.83. The SMI hit an intraday high of 8,763 points. The Swiss Leader Index climbed 2.88 percent and the Swiss Performance Index gained 2.53 percent.

Transocean was the top gainer of the session, surging by 10.8 percent. The stock extended its gains from Friday on the continued rise in crude oil prices.

Richemont advanced 5.5 percent. The company announced that it expects to receive a one time gain of 610 million to 670 million Euros from the completed merger of Net-A-Porter and YOOX. Competitor Swatch also gained 4.3 percent.

Financial stocks also turned in a solid performance Monday. Credit Suisse increased 3.5 percent and UBS added 3.3 percent. Julius Baer also finished higher by 3.0 percent.

Novartis gained 2.80 percent, while fellow index heavyweight Roche added 1.8 percent. Alcon, a division of Novartis, has received approval from the U.S. FDA for its AcrySof IQ Aspheric IOL with the UltraSert Pre-loaded Delivery System for patients undergoing cataract surgery.

Nestle finished higher by 1.8 percent. The foods giant and R&R, a leading European ice cream company based in the UK, are in advanced discussions to set up a new joint venture covering ice cream based mainly in Europe and Africa.