• Sweden edition
 

Stockholm stock market recovers lost ground

Published: 05 Aug 2011 09:56 GMT+02:00
Updated: 05 Aug 2011 09:56 GMT+02:00

While Stockholm's OMX 30 index recovered slightly by mid-morning, the exchange as still down 3.3 percent at 10.30am, reaching its lowest level since October 2009.

By 2pm, the exchange had recovered from morning loses and was only slightly done for the day.

After a 4.6 percent drop on Thursday, the exchange is down more than 10 percent for the week.

Stock markets across Europe experience drops on Friday morning, with the Franfurt exchange down 4 percent in opening trading, while the Milan stock market dipped 3.5 percent and shares in London were down 2.9 percent.

The dip in European markets comes following large losses in Asian exchanges overnight, as well as a decline in stock exchanges in New York on Thursday which were the worst in nearly two years.

Since the start of the year, the Stockholm stock market has lost roughly 20 percent of its value.

According to a new forecast from the SEB bank, concerns about a weaker global economy as well as intensfying problems in the eurozone will likely force the European Central Bank to tone down the need for interest rate hikes in the coming months.

However, SEB's morning analyst report projects that the Riksbank will raise interest rates in September, and perhaps one more time during the year.

Håkan Frisén, head of economic research at SEB, cited a number of factors for the current stock market slump.

“You have a worsening crisis in Spain and Italy as well as differing views on what to do next to deal with the eurozone crisis,” he told The Local.

“We've had more bad news about the long-term sovereign debt crisis in Italy and policy makers aren't prepared to address the problem.”

Other concerns weighing on global markets include disappointing figures in the United States' housing and labour markets in recent months, as well as increasing concerns about the strength of the US economic recovery.

He added that the Stockholm market had been “under-performing” other stock markets for “a long time”.

“Swedish companies have more exposure to the global economy,” he said.

“And Sweden's strong currency keeps pressure on profits.”

According to Frisén, Sweden's "strong domestic foundation" has kept the krona strong.

"But if the crisis continues and gets worse, a somewhat weaker currency could help Swedish companies," he said.

TT/The Local/dl (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

12:26 August 5, 2011 by conboy
What has happened to the holy cow of the "functioning market" oh and of course it's treacherous little twin myth the "market is never wrong" on a more positive note a weaker currency should help Swedish export companies.
13:13 August 5, 2011 by andyron2
The Prime Reason - USA's Debt Crisis.Blame it on the Big brother.It effected Asian markets pretty bad,so stockholm market is nothing compared to them.Also, there are no signs of USA's economy making a come back in the immediate future. With a size close to 25% of the global economy, this is a worry for investors across the world.
Today's headlines
Swedes 'most beautiful' in the Nordics
Swedish actors Peter Johansson, Anna Sahlin and Måns Zelmerlöw. Photo: Maja Suslin/TT

Swedes 'most beautiful' in the Nordics

Who is the fairest of them all? Swedes are, according to the rest of the Nordic nations in a recent survey. READ  

My Swedish Career
American teams up with Swede to beat cancer
Matthew Volsky holding the Gynocoular colposcope which is used for screening cervical cancer. Photo: Gynocoular

American teams up with Swede to beat cancer

When Matthew Volsky first came to Sweden he didn't think he would stick around. Six years and a pioneering invention later he tells The Local about the medical device which is helping save lives around the world. READ  

Swedish organic sales enjoy 'amazing' growth
Arla organic milk. Photo: Björn Larsson Rosvall/TT

Swedish organic sales enjoy 'amazing' growth

Swedes are spending more and more of their food budget on organic foodstuffs, with major supermarkets reporting double digit increases, according to new statistics. READ  

Swedish police warn of rogue pregnant cow
The cow pictured is not the one in the story, and presumably not cranky. Photo: Mike Groll/TT

Swedish police warn of rogue pregnant cow

Police in southern Sweden have issued a public warning about a pregnant cow on the loose, after two people were sent to the hospital after a hustle with the heifer. READ  

SAS and Norwegian suspend Israel flights
Photo: Matt Rourke/TT

SAS and Norwegian suspend Israel flights

About 170 passengers planning to fly to Stockholm on Wednesday have been stranded in Tel Aviv, with flights between the cities cancelled due to a missile striking near the airport. READ  

Sweden demands EU clarity on Bitcoin tax
Photo: Mark Lennihan/TT

Sweden demands EU clarity on Bitcoin tax

With EU countries' treatment of Bitcoin varying vastly, Sweden has asked for clear EU rules stipulating whether or not the cryptocurrency should be taxed. READ  

Google in failed bid for Sweden's Spotify
Photo: Spotify

Google in failed bid for Sweden's Spotify

US Internet giant Google tried last year to buy Sweden-based streaming music service Spotify, but pulled out due to the beefed-up price tag, according to a media report on Tuesday. READ  

Motorists in sticky drama after jam spill

Motorists in sticky drama after jam spill

Drivers in western Sweden were forced to jam on the brakes after a van shed its load of preserves and juices which led to major traffic problems. READ  

Property of the Week
In Pictures: The Local's Property of the Week
Photo: Fastighetsbyrån

In Pictures: The Local's Property of the Week

Why settle for owning a house when you can own part of the island it is located on? This week's property allows you to get your money's worth of solitude while spending some time with your closest neighbour - the sea. READ  

Saab buys Swedish submarine shipyard
File photo: TT

Saab buys Swedish submarine shipyard

Swedish defence and aeronautics group Saab said Tuesday it had completed the acquisition of German heavy industry giant ThyssenKrupp's submarine shipyard in southern Sweden. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Gallery
People-watching Båstad
Business & Money
Sweden falls to third in global innovation index
Society
Swedish ornithologists keep webcam watch
Photo: Andreas Nordström/Image Bank Sweden
Gallery
Top ten Swedish beach hot spots
Tech
Swedish Wiki vet sets new content record
Blog updates

22 July

Det (The Swedish Teacher) »

"Hej! “Det” is a personal pronoun that can be used in many ways, and it might me confusing if you always translate “det” to English “it”. In this article I will do my best to guide you to how to use “det”. Det replacing a word, a phrase or a clause Let us begin with the less confusing..." READ »

 

22 July

PROTECTING GIRLS FROM ABUSE OF THEIR RIGHTS (The Diplomatic Dispatch) »

"Today (22 July) my Prime Minister, David Cameron, and UNICEF, are hosting the world’s first #GirlSummit in London. The Summit’s aim is to mobilise domestic and international efforts to end the appalling practices of Female Genital Mutilation (FGM) and Child Early Forced Marriage (CEFM). This is a high priority for the UK government and the Prime..." READ »

 
 
 
Photo: Fastighetsbyrån
Lifestyle
In Pictures: The Local's Property of the Week
Photo: Finest.se
Gallery
People-watching July 15-16
Photo: Ola Ericson/Image Bank Sweden
Society
What's On in Sweden
Photo: Lisa Mikulski
National
Hope springs eternal for expat pet shop owner
Gallery
Princess Estelle steals limelight at mum's birthday
National
Swedes risk infants' lives by covering up prams
National
Swede runs for office just using Bitcoin funds
Gallery
People-watching July 11-13
National
Malmö mayor slams Danish beggar ban
National
Swedish anti-abortion midwife sues county
National
Swede's salary chopped for Facebook use
National
Northern Sweden warmest in 90 years
Gallery
'Victoria Day': Crown Princess Victoria turns 37
Politics
Mona Sahlin to fight extremism in Sweden
National
EU tells Sweden to cover up snus flavours
Society
Swede snags assassin role in Tom Cruise film
Lifestyle
Top ten ways to spend a few days in Malmö
Gallery
Swedish summer tourism highlights
Sponsored Article
Introducing... Your finances in Stockholm
Sponsored Article
Introducing... Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

695
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se