There was a broad decline in the stock market in Europe on Friday, with most exchanges dropping more than one percent. On Wall Street, there are also declines in the advance trade.
Oslo’s main index, the Poor’s, is now more than three percent below its closing price on Thursday, and thus is falling along with the price of oil. A barrel of North Sea oil is now trading at around $87.9, about two and a half percent lower than yesterday.
After what was just a slight dip in the beginning of the trading day, the heavyweights dragged the stock exchange lower in the early afternoon.
Equinor and Aker BP are down 3.6 and 4.2 percent, respectively, while Yara and Hydro are down about four percent each. Vår Energi is also down four per cent. I mentioned the company This week on cost increases and delays related to the Balder project.
Wind and water company Cloudberry Clean Energy announced in the morning hours that it had raised NOK 800 million after the stock exchange closed on Thursday. The new money will be used to complete the projects, according to the company. On Friday, the share fell 8 percent.
Anger over interest rate meetings
Several increases in interest rates from central banks around the world have had an impact on the stock market. The last trading day of the week ends with more turmoil and negative sentiment in the stock market.
– He can quickly get into a bad mood on the stock exchange today. There was a lot for the stock market to digest this week, said chief strategist Joachim Bernhardsen at Nordea Markets.
It was the US Central Bank (Fed) interest rate decision in particular that affected the stock market this week. The Federal Reserve has sharply revised its interest rate path and given an economic warning
The Fed’s rate decision was more aggressive than the market had thought, and then the mood in the stock market worsened, says Bernhardsen.
The stock market is currently determined by the central banks and the interest rate market. There was a very strong rise in interest rates, says Bernhardsen.
The interest rate on US 10-year bonds rose after the central bank’s triple increase in its key rate, and now trades at around 3.7 percent – the highest level since 2011.
– With a marked increase in long-term interest rates, they often end with a decline in the US stock market, says Bernhardsen.
In an analysis, Britain’s HSBC also warns against investing in European stocks. The continent’s energy crunch indicates that there is no significant upside in the search for value stocks, says analysis, prepared by CNBC.
In troubled times, Europe’s selection of “attractive” value stocks has become a popular place for investors to find a safe haven, unlike the more popular growth stocks in the US.
I don’t think investors should consider a geographic switch just in order to do so, but based on the macroeconomic outlook. This is why I would caution against buying in Europe now, chief strategist Willem Sells at HSBC tells the website.
All three major US stock exchanges fell after the interest rate meeting on Wednesday, as well as yesterday. The Standard & Poor’s index fell 0.8 percent to close at its lowest level since June. The Dow Jones Industrial Average closed 0.36 percent, while the high-tech Nasdaq fell 1.37 percent.
Higher interest rates mean that risky capital has almost completely disappeared, which is especially affecting tech companies, as more important questions are now being asked about the valuation of many of these companies. Banking and finance shares also fell significantly on Thursday, partly due to concerns about loan losses.
Asian markets followed further lower overnight, with S&P futures also in the red on Friday.
The Tokyo Stock Exchange was closed on Friday after it intervened in the foreign exchange market after the markets closed on Thursday by buying the Japanese yen and thus strengthening the currency.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using 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.
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