October 3, 2022

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The main index on the Oslo Stock Exchange is down 2 percent over the year after another sharp drop on Monday

The main index on the Oslo Stock Exchange is down 2 percent over the year after another sharp drop on Monday

The main index on the Oslo Stock Exchange fell by three percent on the first trading day of the week, thus continuing the downward trend for the past week.

The benchmark has fallen more than eight percent in the past two weeks, and is now down 2 percent so far this year.

Equinor was the most heavily traded stock of the day, down 4.54 percent. Hydro is also down more than four percent, while silicone product Rec Silicon is down just under one and a half percent.

Among the 25 most liquid stocks in Borsen, breeder Salmar, Kjell Inge Røkke’s Aker and Scatec ended the day on a positive note. Among the heavyweights, Kahut was the one who escaped the most on the first trading day of the week with a drop of nearly 10 percent.

Today’s course winner is cardboard company Elopak, which is up just under eleven percent.

central themes

Investment strategist Halfdan Grangaard at Handelsbanken believes that monetary policy and inflation are of paramount importance to the market now.

– Topics and events that affect appear, but that’s not what’s central here. He says we are moving from a period of very low inflation to a system where inflation is very high.

He points out that there is widespread fundamental uncertainty about the direction the path is going among investors, and that it affects the market to a large extent.

The big fear is that it will be so tightened that it hurts the economy and ends up in a recession, says Grangård.

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The big fear is that it will tighten so much that it hurts the economy and ends up in a recession, says investment analyst Halfdan Grangaard at Handelsbanken.

The big fear is that it will tighten so much that it hurts the economy and ends up in a recession, says investment analyst Halfdan Grangaard at Handelsbanken (Photo: Lise Åserud)

Friday ended a tumultuous week on the Oslo Stock Exchange with a decline of 1.67 percent. The week started with a new downturn in Asian stock markets, and SEB’s chief strategist, Erica Daltstø, predicted a “big drop in the stock market” at the Oslo Stock Exchange on Monday morning.

In addition to concerns about inflation and interest rates, markets remain marked by uncertainty about how the war in Ukraine will affect financial markets.

– Dalstow said that today’s IT factor will be Victory Day and Putin’s speech.

Victory Day is a term used in Russia, and some other countries in the former Soviet Union, on May 9, 1945, the day National Socialist Germany surrendered during World War II.

Stock market crash in Asia

Japan’s Nikkei fell more than two percent on Monday, while the Shanghai index closed unchanged. The Hong Kong Stock Exchange was closed on Monday.

The turmoil in Asian markets is attributed to the uncertainty related to the Chinese economy, as a result of the shutdown.

“As confirmation of the growing headwinds to the economy from the lockdowns in Beijing and Shanghai and the consequences of the Ukraine war on global growth, Prime Minister Lee warned this weekend of rising unemployment,” Chief Economist Robert Bergqvist wrote in a morning report. .

Chinese exports increased 3.9 percent in April, measured in US dollars. This is the weakest growth since the first wave of infection during the pandemic. Bergqvist writes that it was still somewhat better than feared, and thus provides short-term relief.

US inflation news

On Wednesday last week, the US Federal Reserve raised the expected interest rate by 0.5 percentage point. At the same time, Central Bank Governor Jerome Powell stated that it is not appropriate to raise the interest rate by 0.75 percentage points at once, which is something that the market has begun to raise.

It immediately gave a short respite, but later the declines increased on the leading US indices. So far this year, the Nasdaq tech index is down 22 percent, the broad S&P 500 is down 13 percent, and the Dow Jones Industrial Average is down more than nine percent.

On Wednesday of this week, new inflation numbers will come out of the US. Olaf Chen, head of global allocation and interest rates at Storebrand This will have the biggest impact on the markets this week.

There is a lot of tension about whether we will finally see a settlement in the numbers. The inflation rate is expected to decline from 8.5 percent in March to 8.1 percent. In this case, this would be a symbolic filler for inflation. Chen says he differs slightly on the forecast, as we’ve seen economists repeatedly get it wrong on inflation.

On Monday afternoon, the US stock market continued to decline relative to the major indices. The tech-heavy Nasdaq fell more than 2 percent.

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