Bourse joy short-lived

The Stockholm stock exchange took another tumble on Wednesday following a brief respite after the Federal Reserve announced a cut in interest rates.

By close of trading, the OMXS index had shed 3 percent of its value.

“I’m a bit surprised it wasn’t more positive after yesterday’s Fed cuts. If that didn’t help then it’s hard to see what will,” said SEB analyst Esbjörn Lundevall.

Tuesday’s major interest rate cuts came just a week before the next Fed meeting, fuelling speculation that the Federal Reserve is set to announce further cuts before the month is out.

In Stockholm, an optimistic morning was followed by a turbulent afternoon as the OMXS Index closed at 299.3 points.