GE figures sink Stockholm bourse
TT/Peter Vinthagen Simpson · 12 Apr 2008, 10:33
Published: 12 Apr 2008 10:33 GMT+02:00
Falling share prices hit all business sectors and analysts are starting to talk more openly in terms of a recession in the USA.
Michigan University figures charting consumer confidence did little to lighten the mood. The Michigan index came in at 63.2 for April, the lowest figure since 1982 and down on economist forecasts of 69.0.
The OMXS index fell 1.5 percent to 312.0 points, the fourth consecutive day of negative figures. The index fell 2.5 percent over the course of the week, down 11.3 percent for the year to date.
Friday morning's shaky start in Stockholm was made worse by Citigroup which lowered its recommendations for a swathe of major Swedish companies.
Ball-bearing firm SKF fell 3.9 percent to close at 116.75 ($19.6). Sandvik and Atlas Copco also suffered falling 3.1 percent to 102 kronor and 4.1 percent to 98.5 kronor respectively.
Telia Sonera won a court ruling which states that telecom sector rival Tele 2 has to pay them 500 million kronor. Telia Sonera's share shot up on the news but fell back during the afternoon to close down 1.3 percent at 45.6 kronor. Tele 2 fell 0.4 percent to close at 114.75 kronor.
Biotech firm Q-med issued a warning that the North American and Asian markets for its products are forecast to develop slowly and will hit profits. Q-med's share tumbled 13.9 percent to close at 37.9 kronor.
The mood was dark across the continent's stock markets on Friday. Other leading European indices followed the negative trend as did Wall street.
London's FTSE fell 1.2 percent to 5,895.5, Frankfurt's DAX index fell 1.5 percent to 6,604.5, Paris' CAC 40 dropped 1.3 percent to 4,797.93.
New York's Dow Jones index fell 2 percent to close at 12,325.4 while the Nasdaq Composite dropped 2.6 percent to 2,290.2.