Norwegian celebrates its 20th anniversary as the stock market plunges 6.41 percent

Norwegian celebrates its 20th anniversary as the stock market plunges 6.41 percent

The main index on the Oslo Stock Exchange fell 0.9 percent after opening on Thursday. At the time of closing, the exchange was down 1.13 percent.

In advance, a 0.8 percent drop was expected on Thursday, according to NordNet analyst Roger Berntsen.

The price of oil has seen volatility during the day, and it is trading around $94 a barrel. This happens after concern that the global economic downturn will damage the world’s energy demand, writes TDN Direkt. At the same time, he points to a possible cut in OPEC + production.

Oslo Boers put behind him a month that contained both ups and downs. But the main index managed to rise and ended the month slightly higher by 0.32 percent.

Seadrill was the gainer on Thursday morning, up 10 percent. It happens after the company announced that it would sell the excavators for approximately NOK 6 billion. At the time of closing, the increase is halved.

Decreased appetite for risk

The Norges Bank wrote in an update on Wednesday that the Norges Bank will buy currency on behalf of the state at the equivalent of NOK 3.5 billion per day in September 2022. This means that the central bank will sell NOK. The NOK 3.5 billion was much higher than expected. The Norges Bank announcement weakened the krone exchange rate.

– In addition to lower energy prices in recent days, overall risk appetite in markets has come under pressure since Fed Chairman Powell announced last week a prolonged tightening of financial conditions to combat inflation.

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This is what Chief Economist Marius Gunsholt Hof and Currency Analyst Nils Christian Knudsen wrote in Handelsbanken’s morning report.

On Thursday, the Norwegian PMI figures will be released, which show the growth of the Norwegian industry. In July, the Purchasing Managers’ Index fell by 1.4 points to 54.6 in July.

Wall Street Fall

The broad S&P 500 and heavy industry Dow Jones Index fell more than four percent in August. The Nasdaq Technology Index fell about five percent. This is the worst August for the three indices since 2015, according to Reuters.

Now there is a month waiting for a new increase in the key interest rate from the US central bank. The interest rate is already set at 2.25 percentage points in 2022. The interest rate markets are pricing in a triple increase from the Federal Reserve this month. Earlier this week, the New York Federal Reserve poured cold water on anyone dreaming of a rate cut next year. Inflation is too high for that.

This is how I looked at the three leading indicators on Wall Street at 16.10 Norwegian time:

  • The S&P 500 fell 0.9 percent
  • The Nasdaq Composite Index is down 1.26 percent
  • The Dow Jones Industrial Average fell 0.67 percent

Located in Asia

New activity reports from China, this time conducted mainly in small and medium-sized companies in the private sector, show a decrease in activity compared to July. A slight improvement was expected.

The larger-than-expected decline in the Caixin PMI is more significant than the slight increase in the official PMI report. This indicates that the downward pressure on prices in the industry has intensified in the past month. There is more pain on the horizon given the upcoming slowdown in exports and continuing problems in the real estate sector, chief China economist Julian Evans-Pritchard said in a commentary.

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Correction: In an earlier version, DN wrote that the Oslo Boers fell five days in a row. It’s misleading since Tuesday ended with a weak stock market rally.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using the links that lead directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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