Last week was a blip on the Oslo Stock Exchange: Friday was the stock market’s worst day so far this year, followed by Monday’s rally. On the other hand, it ended Tuesday, down 0.6 percent, before the main index rose 0.7 percent on Wednesday.
On the first trading day of December, the rise in oil prices and heavy stock exchanges contributed to the rise of the main index.
The price of a barrel of North Sea oil was about $71.8 on Wednesday afternoon, up 2.3 percent from Tuesday.
Equinor was the most heavily traded stock so far, closing 0.6 percent higher. Shares of Aker BP rose 1.9 percent. Other than that, Hydro ended up 3.8 percent, while DNB stock rose 2.5 percent.
– After the stock market fell yesterday in the US and Europe, Asian stock markets are recovering this morning. SEB reported in its morning report on Wednesday that Chinese exchanges are just above the zero line, and Japanese ones are up nearly 1%.
The good news brings Softox courses
Immediately after the stock market opened, Softox Solutions’ share rose by 10.4 percent. This happens after the company announced that the European Union is opening up to the use of the company’s disinfection products
This is good news for Softox. We are of the opinion that the European Commission’s assessment will now enable us to make our products available on the market so that we can fulfill our obligations under the agreement with hospital purchases, the company wrote.
The Norwegian pharmaceutical company had previously rejected a request for a transitional arrangement from the Norwegian Directorate of Environment for its hand sanitizer products. In this context, the company has requested an assessment and an explanatory statement from the European Commission.
That green light has now been given, according to the company itself.
On Wednesday morning, before the stock exchange opened, news came of the Norwegian entering into an agreement to lease two Boeing 737 Max aircraft. The aircraft will be delivered to the company soon. In the past week, Norway’s share has fallen by about ten percent.
Immediately after the opening of the stock exchange, Norway’s share rose by 1.09 percent.
However, SAS shares fell more than 10.7 percent, after Nordea cut its price target to SEK 0.5 from NOK 1.2 earlier on Wednesday. Nordea writes that it is worrying that the company is entering the winter season with a higher-than-expected cash burn, although the brokerage believes the company is working on a financial restructuring. In the long term, the outlook is described as uncertain.
From one night to Wednesday, news also surfaced that Rec Silicon CEO Tore Torvund had resigned after twelve years. The current Chief Financial Officer, James A. May 2, acting CEO role. When the stock market opens, the stock rises 0.55 percent.
US Federal Reserve Governor Jerome Powell appeared on Tuesday afternoon at a US Senate hearing. In his prepared speech for the hearing issued yesterday, he emphasized that Omicron poses a threat to the US economy.
“The increase in the number of new coronavirus cases and the emergence of the omicron variable poses a negative risk to employment, economic activity and the uncertainty surrounding inflation,” she added.
The US Federal Reserve’s acknowledgment that the risk that inflationary pressures are not quite as temporary as initially assumed, and that they will therefore have to consider a faster phase-out of stimulus measures and an early upward adjustment of interest rates, has resulted in the stock market already saddled with pandemic fears and wiping confidence The disappointing consumer fell further, DNB wrote in its morning report.
Uncertainty creates turmoil
The recent market turmoil is particularly related to the news regarding the new omikron virus variant, which is creating uncertainty among investors. Stéphane Bancel, president of Moderna, said Tuesday that he believes vaccines will have a much smaller effect against the omicron variant. He also believes it will take months before drug companies can mass-produce a new vaccine that specializes in different types of virus.
Pål Ringholm, head of analysis at Sparebank1 Markets, points out that the uncertainty is creating turmoil in the stock market.
Although we are well trained in this and vaccinated, there is still room for maneuver and uncertainty. Until we get the insights in mid-December, it’s not unreasonable to think the stock market is nervous and can be volatile, Ringholm told DN Tuesday afternoon.
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