ZEW-CS Financial Market Test Switzerland - SNB Decision Causes Market Disruptions
CH Indicator of Economic SentimentThe economic outlook for Switzerland further tarnished in January. Analysts' projections went into a tailspin in the wake of the Swiss National Bank's decision on 15 January 2015 to scrap the EUR/CHF exchange-rate floor, resulting in an overall decrease by 5.9 points. The ZEW-CS economic expectations indicator now stands at a reading of minus 10.8 points. 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 Mannheim Centre for European Economic Research (ZEW) in cooperation with Credit Suisse (CS), Zurich.
While analysts who answered the survey prior to the SNB's media release would have pushed the ZEW-CS Indicator back into positive territory, the analysts who responded after the SNB's media release were much more pessimistic. As a result, economic expectations for Switzerland did not recover but decreased further. The negative indicator reading in January is heavily influenced by the strong reactions in the aftermath of the SNB’s decision and currently difficult to interpret. When the shaken Swiss markets get back to normal, we will be able to evaluate in how far the current pessimistic assessments will materialise.
Detailed Results
Detailed results are published in this month's edition of the "Financial Market Report Switzerland", which also includes the survey participants' assessment of developments in other countries:
For further information please contact
Lena Jaroszek (ZEW), Phone +49 (0)621 1235-380, E-mail jaroszek@zew.de
Lukas Gehrig (Credit Suisse), Phone +41 44 333 52 07, E-mail lukas.gehrig@credit-suisse.com