Global markets swing into turmoil as Swiss lets franc soar
Moneylife Digital Team 15 January 2015

Over $98 billion was wiped off the value of Swiss stocks, their biggest daily fall in 26 years, while the pan-European FTSEurofirst 300 slumped 2% and Wall Street futures turned negative after the SNB scrapped its three-year old peg of 1.20 Swiss francs per euro

 

Global markets were thrown into turmoil on Thursday as a shock move by Switzerland to abandon its more than three-year-old cap on the franc sent the currency soaring and Europe's shares and bond yields tumbling, says a report from Reuters.
 
The Swiss National Bank (SNB) stunned markets when it scrapped its three-year-old peg of 1.20 Swiss francs per euro. The central bank also cut its main interest rate to -0.75%—a move further into negative territory. 
 
In a chaotic few minutes after the central bank's announcement, the Swiss franc soared by almost 30% in value against the euro. 
 
Over 100 billion francs ($98 billion) was wiped off the value of Swiss stocks, their biggest daily fall in 26 years, while the pan-European FTSEurofirst 300 slumped 2% and Wall Street futures turned negative, says the report.
 
The move, however hit European equity markets hard, with the Swiss benchmark stock index falling by more than 13%. 
 
According to a report from MarketWatch, despite the plunge in Switzerland's stock market, the US-listed shares of some high-profile Swiss companies were actually rising in premarket trade Thursday as the Swiss franc soared. 
 
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