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Stockholm stock exchange plummets

Stockholm stock exchange plummets

Published: 18 Aug 2011 16:29 GMT+02:00
Updated: 18 Aug 2011 16:29 GMT+02:00

The Stockholm stock exchange was down 6.2 percent on Thursday afternoon when trading closed, making the drop the steepest since November 2008. A broad fall among other European stock markets means fears of a recession are mounting.

At the close, the OMXS-index had fallen 6.2 percent to 283.1, while the OMX30 was off 6.7 percent, closing at 870.4.

A few minutes into trading on Thursday morning the OMXS-index was down by one percent. The fall was broad as all indexes dropped, and companies which saw the highest trading volume were nearly all down.

The fall on the Stockholm stock exchange as well as that in the rest of Europe grew over the course of the morning. By 11am the OMXS-index had dropped by almost three percent.

Primarily, shares in the recession-sensitive manufacturing sector were down, falling by 4-5 percent as fears mounted about slowing global growth.

Among the companies whose shares were traded the most, Volvo AB's B-shares were down by 6.1 percent by 3.30pm, followed by H&M and Ericsson shares, both down by 2.5 percent by the afternoon.

Bank shares are also suffering. By 4pm Swedbank had plummeted by 10 percent. Handelsbanken shares fell by over 7 percent, Nordea by 8.3 percent and SEB by 8.9 percent.

The fall grew in force over the afternoon at the leading stock exchanges all over Europe during Thursday afternoon following sombre US stats.

The US investment bank Morgan Stanley warned on Thursday as well that the world economy was "dangerously close to a recession" in its growth forecast for 2011 and 2012.

In Frankfurt the DAX index had fallen by 5 percent shortly before 3.30pm. In Paris the CAC index had fallen by 4 percent and the London exchange had lost 3.4 percent of its value by the afternoon.

Meanwhile the price of gold rocketed, up 1.6 percent on the day to $1,816.09 an ounce on the world market.

The rise was due to increasing numbers of investors moving their money into what is as a safe haven for investors during turbulent times.

TT/Rebecca Martin (news@thelocal.se)

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Your comments about this article

21:14 August 18, 2011 by lovedealer76
All the money are in the hands of the greeds,they all love being up there while the rest perish,that's when they get a little amuse.

It's about time judgement day comes by,if the will ever be such thing as it
22:09 August 18, 2011 by The Grand Master
Good job Sweden is being run with sound economic management since the rest of Europe and the USA are about to enter 'Recession 2 - The debt fights back.'

Whatever one might think of the basic capitalist system that has served us so well, it's pretty obvious that the insane levels of overspending and resulting deficits and exploding debt levels that many western nations have burdened themselves with, will now lead to the mother of all collapses.

For sure Sweden is not immune to the coming financial apocalypse, but sound monetary and fiscal policies as followed by the current Government will ease the pain here somewhat.

Something to bear in mind though, the last 20 years has actually seen the greatest economic boom the world has ever seen, but most of it has happened in developing nations-China and India combined have seen over 1 billion people lifted out of absolute poverty.

The 21st Century belongs to the developing world, our western decadence in overspending and underworking will only hasten our demise. Bloated welfare systems have only exacerbated the problem. Something for nothing is the acceptable norm for far too many in our western societies.

For those of you using the simplistic 'blame the rich' argument, you are so so misguided, this is all down to countries living beyond their income. Borrowing huge sums for future generations to repay. And not borrowing to invest in the future, just borrowing to falsely increase living standards today.

The 'greed' is not just the rich, it is the want of everybody to have more today than they can afford or are prepared to work for. Sadly it's future generations who will suffer for this madness.

As for the Euro-what chance of it's (deserved) collapse by the end of 2011?
23:09 August 18, 2011 by jostein
Winter is coming.
23:28 August 18, 2011 by HYBRED
With economies around the world having tough times, it was just a matter of time before it hit Sweden. Sweden is not so high and mighty to be immune from ecomomy problems. I think the economic situation in Sweden has been going down for quite a while now. The government seems to have been putting a happy face on the situation and pretty much just BSing the public trying to make them believe everything is so rosey.
01:15 August 19, 2011 by lovedealer76
@ The grand master

well you're right still
10:19 August 19, 2011 by riose
@The grand master

The developing countries are having another bubble. All the capital flying away from the first world is creating the "easy money" illusion there.

Try googling "Developing world bubble".

The proof that there is a bubble is that the people wonder if there is a bubble ;-)
18:03 August 19, 2011 by Grokh
everytime the stock market plummets someone becomes a multibillionaire yay for speculation -_-x
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