The Swiss market closed on a positive note on Tuesday, mirroring other European markets, as multiple stimulus measures announced by the Chinese central bank bolstered sentiment by aiming to rejuvenate the growth of the world's second-largest economy.
The benchmark SMI index gained 83.50 points, or 0.7%, to settle at 12,048.85, fluctuating between 11,985.39 and 12,076.42 throughout the session.
Richemont surged over 4%, while Swatch Group, SIG Group, and Sonova saw gains ranging from 1.6% to 2%. Swiss Re, Nestle, Julius Baer, Lindt & Spruengli, Straumann Holding, Kuehne + Nagel, and ABB also posted gains, rising between 1% and 1.4%.
Schindler Ps, UBS Group, and VAT Group ended nearly 1% higher. Swiss Life Holding, Sika, Roche Holding, and SGS registered modest increases.
Conversely, Novartis, Sandoz Group, and Lonza Group closed in the red, while Holcim and Logitech International ended their sessions flat.
China initiated a range of stimulus measures today, including reducing its benchmark interest rate, to pull its economy out of a deflationary slump and steer it towards the government's growth targets.
The central bank announced it would lower borrowing costs and infuse more liquidity into the financial system, thereby facilitating increased lending. Regulators also disclosed plans to bolster stable development in the stock market.
People's Bank of China Governor Pan Gongsheng revealed that the reserve requirement ratio would be cut by 50 basis points. He further announced a reduction of 20 basis points in the seven-day reverse repo rate, bringing it to 1.50%, and a 30 basis point cut in the one-year medium-term lending facility rate.
Additionally, the central bank introduced measures to support the property market, including reducing the minimum down payment ratio for second homes from 25% to 15%. The bank also aims to lower existing mortgage rates to align them more closely with new mortgage rates.