May 27, 2022

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Oslo Stock Exchange Turned Down - Everyone's Eyes on the US Federal Reserve

Oslo Stock Exchange Turned Down – Everyone’s Eyes on the US Federal Reserve

The Oslo Stock Exchange fell a bit from the start before turning positive. In the middle of the trading day, the main index fell again and fell just after 1 pm by 0.1 percent.

Dry bulk shipping company Western Bulk has risen since the beginning after the company Wednesday morning, his expected result increased For 2021, it is down 0.4% so far.

On Wednesday, Aurora Estate is gone in the stock exchange. in a In the summer it became known that the hotel investor Peter Stordalen, Norgesgruppen owner Johann Johansson, Marius Varner in the Varner Group, Christian Ringnes, and Lars of Lucith have joined forces to create the new shopping center company.

The company listed on the Euronext Growth trading platform is up about eight percent since the start.

Elliptic Labs is the winner so far in the stock market today and is up 22.7 percent after the announcement Wednesday morning that the company is entering into a partnership with Intel Corporation. The day’s most heavily traded stocks were Equinor and Hydro, down 0.2 and 1.7 percent, respectively.

interest rate meeting

After the stock market crashes in both the US and Europe on Tuesday, everyone’s eyes are focused on Wednesday’s interest rate meeting with the US Federal Reserve. Given the high inflation, the market is preparing itself to raise interest rates.

The most important event of the day will undoubtedly be the Federal Reserve’s interest rate meeting. It is clear on the cards that the central bank will adopt a more “harder” tone in discussing inflation, wrote Knut A. Magnussen in DNB Markets Morning Report.

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At the press conference, US Federal Reserve Chairman Jerome Powell will outline US Federal Reserve (Fed) plans to reduce purchases of US securities.

Waiting for double downsizing

Since the outbreak of the epidemic, the US Federal Reserve has supported the purchase of government bonds for 120 billion per month, but it was recently reduced by 15 billion per month. DNB’s Magnussen, like the market, believes it will be cut by another 15 billion from January.

The reduction in the volume of securities purchases is likely to double from 15 to 30 billion dollars per month, which means that the process will be completed by the end of March. The dot graph, which shows the interest rate expectations of the representatives, is likely to be significantly raised. He wrote that the average may now show three increases in 2022, roughly in line with market prices, and another four increases in 2023.

The SEB also wrote in a morning update that they also expect the US Federal Reserve to increase the cuts to $30 billion per month.

However, Handelsbanken wrote in his morning report that it would be more exciting to see how quickly members envisage raising interest rates, in order to bring inflation down toward the target.

So far, members have been split between two or three more increases in 2023. There is a risk that these interest rate expectations will be revised upward as well. If forecasts were revised upwards to roughly four increments, it would be overall more hawkish than the market appears to be pricing today.

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The stock market crash in the United States

There were declines in the stock market in both the US and Europe on Tuesday. All major US indices fell broadly. The Standard & Poor’s 500 Index closed down 0.75 percent, while the Nasdaq Technology Index fell 1.14 percent.

Markets, which largely ignored last week’s high inflation numbers, now seem more concerned about what’s to come from the Federal Reserve, DNB Markets writes.

– Long-term rates rose a bit yesterday, but the effects were small and in the US, the ten-year rate ended at 1.43%. The krone continued to weaken yesterday.

In Japan, the Nikkei 225 rose 0.1 percent, while the Hang Seng fell 1.14 percent. Here, too, investors await the outcome of the Federal Reserve’s interest rate meeting.

On Tuesday, the main index on the Oslo Stock Exchange fell 1.34 percent, Where the obvious loser today was the automated storage company Autostore That fell by 13 per cent after the defeat in patent lawsuits. (Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads 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.