LONDON, June 18 Reuters Switzerlands bluechip stock index has established the longest winning streak in its 33year history, after having risen every single day so far in June, as investors loaded up on drugmakers and other defensive stocks.
The SMI index of top 20 stocks has gained 5.7 in the past 13 sessions and on Friday it was up 0.3 on the day, further extending its rally to fresh record highs.
The SMI index is very sensitive to movement in bond yields, said Ankit Gheedia, BNP Paribas head of equity and derivative strategy for Europe.
Over the past few weeks before the FOMC, bond yields were in a downtrend which was beneficial for the defensive and bond proxy sectors or indices like SMI.
Policymakers at the Federal Reserve surprised markets and pushed U.S. Treasury yields higher by signalling on Wednesday that the U.S. central bank would raise interest rates and end emergency bond buying sooner than expected.
But the surge in longdated yields was shortlived, with yields on 10year and 30year U.S. Treasuries dropping on Thursday, helping boost defensive sectors.
The European Central Bank committed last week to keeping policy ultraloose while the economy recovers from the COVID19 pandemic.
The Swiss indexs recordsetting run comes as optimism about Europes economic potential and bets on continued policy support have fuelled a surge of global investor interest in the region.
A BofA survey of fund managers showed this month that 41 of respondents are overweight…