The main index on the Oslo Stock Exchange rose about one and a half percent on Wednesday afternoon, thus continuing to rise for the third day in a row.
Elsewhere in Europe, though, there are red stocks like France’s Euronext 100, the Frankfurt DAX and the broad Stoxx Europe 600, all dropping gently a few hours before closing time.
Developments in Europe on Wednesday come after Wall Street’s main indexes extended their rally on Tuesday, led by the technology-heavy Nasdaq, which rose nearly three percent.
It is not unusual for the Oslo Stock Exchange to open, said Christian Lee of consultancy and management firm Formue, to DN after opening at the stock exchange on Wednesday.
After a mixed development in Asia on Wednesday night, with stock market indices in Japan, South Korea and Australia slightly higher, while China and Hong Kong fell slightly, signs from the largest European markets were that they will open a stock market. little on Wednesday.
And the Oslo Stock Exchange accelerated from the start at 0900. A few minutes later, the main index was up about 2%. Half an hour later, the rise was fairly moderate, to 1.2 percent.
Describing stock markets as unfathomable, Christian Lee says he has “really given up on predicting the short-term evolution of the stock market.”
But we have seen historically that after a long period of bad mood, there are often small positive signs before the mood changes. But we must bear in mind that this is not fundamentally new. Few of the drivers who pulled the markets lower have turned in a clear positive direction. We still have a significant monetary tightening ahead. Central bankers have also indicated that it may be difficult to control inflation without negative multiplier effects on the economy, he says.
On Wednesday morning, UK April inflation figures came in at 9 per cent last year, somewhat lower than expected.
The climate in the stock exchanges is very fragile. If there are, for example, negative inflation signals, they can influence stock market developments. We have seen that the mood among many investors has become very pessimistic. Many private investors have started selling stock funds, and large hedge funds have significantly reduced their exposure to the stocks, Lee says.
At the same time, markets seem to be pricing in that there is more potential for a recession than a slump, he says.
Stagflation means that growth is weakening at the same time that inflation remains high and interest rates are raised.
Among other things, long-term interest rates have fallen somewhat. This indicates that the markets are starting to price as you don’t need to raise rates as much as we imagined a few weeks ago.(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.
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