I ran an empirical analysis on recent interest rate changes of European central banks on Swiss equity prices and found statistically significant results. A 1 percentage point increase in interest rates would lead to a around 5% increase in the daily return of equities on the day the monetary policy announcement was made. For bond prices my results show that this would lead to a negative impact on bond prices of about 1%, which is what I would have expected for equities too. So how can it be that the short term response of equity prices to a rise in interest rates is positive?
perhaps flight to quality? ie reduced expectations of euro equity profits cause equity reallocation out of euro into chf.
and increased eur bond yields perhaps cause bonds reallocation out of chf into eur because of a) higher , ie more attractive coupons , b) eurchf xchange rate perhaps expected to strengthen