ZEW-CS Financial Market Test Switzerland - Positive Economic Outlook only Dampened by Stock Market Expectations

In December 2013 economic expectations for Switzerland have increased by 7.8 points. Accordingly, the ZEW-CS-Indicator of economic expectations has reached the 39.4 points-mark. This level was reached for the last time in May 2010 when the Eurozone crisis was in its early stages. The ZEW-CS Indicator reflects the expectations of the surveyed financial market experts regarding the economic development in Switzerland on a six-month time horizon. It is calculated monthly by the Centre for European Economic Research (ZEW) in cooperation with Credit Suisse (CS).

After last month’s temporary setback the assessment of the current economic situation in Switzerland is now back to the level recorded in October. The respective indicator has risen by 14.8 points to a level of 48.5 points in this month’s survey.

Although the surveyed analysts are optimistic with respect to Switzerland’s current economic situation and its development on a six-month timeframe, expectations regarding the Swiss stock market are rather pessimistic. The indicator which reflects experts’ expectations of the development of the Swiss Market Index (SMI) decreases to a level of 38.6 points in December. For comparison: In October 2013 the index had registered 62.0 points. Stock market expectations are likely to be dampened by increasing indications of an earlier-than-expected tapering by the US Federal Reserve. If securities markets are still too fragile and prices drop, this will also impact on Swiss and European stock markets.

For further information please contact

Gunnar Lang (ZEW), Telefon +49 (0)621 1235-372, E-Mail lang@zew.de

Lukas Gehrig (Credit Suisse), Telefon +41 44 333 52 07, E-Mail lukas.gehrig@credit-suisse.com