• Sweden edition
 
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

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)

Don't miss...X
Left Right

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
Today's headlines
Sweden keeps eye on Norway bomb threat
Norwegian police car at Oslo Gardemoen Airport. Photo: TT

Sweden keeps eye on Norway bomb threat

The Swedish Security Service (Säpo) have said that an "imminent terror threat" to neighbouring Norway doesn't yet affect Sweden although developments are being closely followed. READ  

Seven-year-old Swede cycles to Berlin
The Blomdahl family in Berlin. Photo: Private

Seven-year-old Swede cycles to Berlin

Edvin Blomdahl is seven-years-old. He also cycled from Sweden to Berlin, a journey of 370 kilometres, in four days. READ  

Opinion
'Gaza conflict needs help, not empty rhetoric'
Demonstrations at Sergels Torg in Stockholm. Photo: Kent Vilhelmsson

'Gaza conflict needs help, not empty rhetoric'

As the rhetoric rises at demonstrations in Swedish cities, Stockholm-based Israeli writer David Stavrou calls on Swedes to think before they shout and to cast a critical eye over much that is written and said about the conflict in Gaza. READ  

Brit's charity tractor trek heads for Sweden
The vintage tractor ready to travel from UK to north Norway. Photo: Peter Matheson

Brit's charity tractor trek heads for Sweden

A British man is set next month to drive from Scotland, across Sweden, and to the northern tip of Norway on a vintage tractor to raise money for a cancer charity. READ  

Sweden agency hikes heat warning to 'extreme'
This canine friend is not amused. Photo: TT

Sweden agency hikes heat warning to 'extreme'

Swedish weather agency SMHI has raised its weather warning to class 2, giving notice of "extremely high temperatures" in parts of the country. READ  

Songs for a hot Swedish summer
Ted Gärdestad. Photo: TT

Songs for a hot Swedish summer

Contributor Paul Connolly has put together a list of Swedish songs to capture balmy summer days, which in his neck of the northern woods are pushing the mercury above 35c for the first time in a century. READ  

Swedes suffer as buses boil in the summer sun
Photo: TT

Swedes suffer as buses boil in the summer sun

Stockholm's local traffic authority has received almost 300 complaints since June 1st with many regarding stifling heat on the city's buses, which lack air con. READ  

Grounded flights strand Swedes in Tel Aviv
Photo: Matt Rourke/TT

Grounded flights strand Swedes in Tel Aviv

UPDATE: About 270 passengers planning to fly to Stockholm are still stranded in Tel Aviv, and airlines have stated that flights will likely be grounded on Thursday as well. READ  

The Local List
Top ten: Swedish taboos
The butter knife is for butter. Photo: Mats Sandelin/TT

Top ten: Swedish taboos

From standing in line to taking your hols in the off-season, Sweden is a society with customs and faux pas, the Danes might say taboos. Here is a list of ten to watch out for. READ  

Fears mount for Swede kidnapped in Ukraine
A tank in Horlivka. Photo: Dmitry Lovetsky/TT

Fears mount for Swede kidnapped in Ukraine

A mediator who handles prisoner exchanges between Ukraine and pro-Russian rebels said on Wednesday that he feared for the life of a kidnapped Swede. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Gallery
People-watching July 23
National
Swedish cops elect not to shoot 'angry elks'
Business & Money
New alcohol retail rules threaten micro-breweries
Gallery
People-watching Båstad
Business & Money
Sweden falls to third in global innovation index
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 »

 
 
 
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
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
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

702
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