Stockholm stocks down on France concerns

The Stockholm stock exchange plunged on Wednesday as global markets tumbled on fears of Greek debt and the risk of a downgrading of France's credit rating.

Stockholm stocks down on France concerns

The OMXS index fell to close 2.4 percent down despite a strong start to the morning’s trading and bringing the total fall for the past ten days to more than 10 percent.

Tuesday’s stock market relief, which also set the tone for much of Wednesday, was swept away entirely when the US stock markets opened to sharply falling prices.

The main underlying factor on Wednesday was the prospect of an imminent downgrade of France’s credit rating.

London’s FTSE-100 index fell 3 percent to 5,007 points, the Paris CAC-40 plunged 5.45 percent to 3,003 points, and the Frankfurt DAX dived 5.13 percent to 5,613 points.

Italy’s stock market recorded its worst performance since April 2009 at the height of the global economic crisis amid renewed concerns over the eurozone debt crisis, closed 6.65 percent lower on Wednesday.

Among the more high profile victims was the Bank of America which fell nearly eleven percent by the time the Swedish stock market closed. Behind the nosedive was a lowered recommendation from S & P Equity.

At the same time dropped the Dow Jones fell to close 4.6 percent and the Nasdaq New York Stock Exchange 3.4 percent and the Nasdaq Composite was down 4.09 percent.

Swedish bank stock was at the forefront of the decline with the sector falling 3.4 percent by closing.

Manufacturing shares were also hit hard with Sandvik down 4.7 percent and SKF declining 4.8 percent.

Analysts argued that traders were looking for a reason to sell on Wednesday and the parlous state of French public finances was the latest available piece of dire news, enough to encourage nervous markets to run for cover.

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Stockholm stock exchange suffers worst day of 2018

The Stockholm stock exchange plunged by 2.8 percent on Thursday, making it the worst trading day of 2018.

Stockholm stock exchange suffers worst day of 2018
File photo: Stina Stjernkvist/TT
Stock markets across Europe suffered for the third day in a row as the arrest of a top Huawei executive in Canada has raised the spectre of an all-out trade war between the US and China.
For the Stockholm Stock Exchange, it meant a blood-red trading day that ended as the worst of the year thus far. The OMXS Stockholm 30 index fell by a combined 2.8 percent.
The majority of the companies on the index lost value, with the exception of Ericsson, which seemed to benefit from the news about its Chinese competitor Huawei with a 1.8 percent increase. Airline SAS also saw its stock increase, rising 4.2 percent thanks to sharp declines in oil prices. 
Among Thursday’s biggest losers was the mining company Boliden, which suffered a 6.1 percent drop. The stock of the Stockholm-based tech company Hexagon fell 5.6 percent.
Meanwhile, the stock of Swedish auto safety equipment manufactor Autoliv fell 6.1 percent on the news that it expects to pay some 1.8 billion kronor in fines as a result of an European Commission investigation into anti-competitive behavior in the EU. 
Stockholm was far the only European bourse to have a gloomy Thursday. The CAC index in Paris fell 3.3 percent, the DAX index in Frankfurt dropped 3.5 percent and the London Stock Exchange's FTSE index decreased by 3.2 percent.