Investors sent the Oslo Poor’s down significantly from the start

Status updated.

The main index on the Oslo Stock Exchange fell 1.3 percent on the last trading day of the week.

Oil price (burn spot) on Friday morning at around 81.2 US dollars per barrel, down a little 5.4 percent since the beginning of the year.

The main index has fallen so far this week by 1.74 percent, after ending Thursday down 0.8 percent. So far this year, the main index is up 3.75 percent.

Yesterday’s decline in Wall Street, due to the banking sector, led to many banks retreating inside on Friday.

DNB shares fell 2.0 percent, Nordea 2.7 percent, and Sparbank SMN 1.9 percent.

Price growth is less than expected

Before the stock exchange opened, Statistics Norway provided figures on price growth in February.

Upfront, total inflation was expected at 6.8 percent and core inflation at 6.3 percent. The result was that prices rose 6.3 percent year on year, and core inflation, that is, price growth excluding energy commodities and tax changes, rose 5.9 percent from February last year to February this year.

At the same time, Statistics Norway published its estimates of the Norwegian economy in the coming years. Weak price growth, rising unemployment, and a peak in interest rates in June were among the projections for 2023.

The fall caused by the banking sector

It was a shaky day on the New York Stock Exchange, and throughout the evening there was a noticeable decline in the main indexes of the stock exchange. This is how I looked for the leading stock indices when the stock market closed on Thursday:

• The Dow Jones Industrial Average, which consists of 30 handpicked stocks believed to be important, fell 1.66 percent.
• The S&P 500 Collective Index, which consists of the 500 largest companies listed in the United States, fell 1.85 percent.
• The Nasdaq Composite Index, which was dominated by technology stocks, fell 2.05 percent

The news that led to the decline came from the US banking sector, Kjersti Haugland, chief economist at DNB Markets wrote in the morning report on Friday.

Silicon Valley Bank (SVB) announced that it will issue $2.25 billion worth of shares to create capital after a significant loss of about $1.8 billion from selling parts of the stock portfolio. The share fell by as much as 60 percent, to its lowest level since the fall of 2016

Causing severe disturbance. In addition, there was a general concern that many banks might have to sell their holdings of interest-bearing securities, which had been bought in the era of low interest rates, at a great loss as a result of the sharp rise in interest rates that occurred. place in the past year, Haugland writes.

Investors put behind them two days in which attention focused on US central bank chief Jerome Powell. Powell was attending a hearing on Tuesday and Wednesday on Capitol Hill to talk about the economic situation in the United States.

Powell emphasized that there will likely be a need to raise interest rates stronger than the central bank signaled in December, as a number of strong key economic figures were released. There is now an 80 per cent chance of a 0.5 percentage point hike at the next interest rate meeting.

Significant decline in the stock market in Asian stock exchanges

The Nikkei index of the Tokyo Stock Exchange fell more than 1.3 percent when trading began on Friday morning – the same as the Seoul Stock Exchange in South Korea. Sydney’s main index fell nearly 2 per cent – just hours after interest rates and recession concerns surfaced on Wall Street.

– It’s all about the employment report from the US later on Friday, writes ING in the morning report from Singapore.