Stockholm Stock Exchange falls but the obliteration was sort of avoided in the last minutes
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Tuesday, 16 August 2011
Stockholm Stock Exchange followed the leading European stock markets to close down on Tuesday after weak European macro economic data and nervousness ahead of tonight's political news from German and French heads of state.
The daily market slump was reached during the early afternoon but was followed by a recovery in late trading after Fitch repeated "AAA" credit rating for the U.S.A and today's U.S. macro data which came out generally better than expected.
"The reality is that the economy has lost traction at a faster rate than they (and we) had expected, and not only in the weaker peripheral countries but also in the nucleus, "said French bank BNP Paribas, commenting on today's weaker than expected European GDP slips, according to Dow Jones Newswires.
At home, Lundin Petroleum AB and Nokia made advances against the current wobbly situation. The OMXS30 index fell 1.1 percent to 957while turnover was Skr15.7 billion.
Investors were cautious in taking new positions ahead of tonight's press conference after the meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy, which was expected to start at 18 o'clock on Tuesday, Swedish time.
Sector-wise met the industrial sectors put the greatest resistance in Stockholm, where the cyclical companies, Sandvik and SKF fell back. Sandvik fell 3.4 percent and SKF was down by 3.5 percent.
Among large companies Nokia and Lundin Petroleum defied the negative sentiment for the day.
Lundin Petroleum rose at beginning of trading and was up 11 percent after today's ruling as Statoil confirmed the connection between Aldous and Avaldsnes. Lundin holds 10 percent of Aldous and 40 percent in Avaldsnes. The shares listed a gain of 13 percent.
Together, the deposits found constitute 500 - 1200 million barrels of recoverable oil. If deposits fall into the upper end of the discovery it will be one of the ten largest oil finds ever in the Norwegian continental shelf.
Ericsson was weak among the most traded share, falling 2.7 percent to Skr70.70. One theory among traders is that there may be one rotation in the sector when Nokia went up by 4.9 percent to Skr39.78. This is the continuation of the big deal yesterday in which Google bought Motorola Mobilty.
In an extraordinary meeting on Tuesday the NIER down graded its forecasts of the Swedish economy's growth by about one percentage point for next year. The Authority now expects that Sweden's GDP will grow by about 2 percent next year, compared with the previous estimate of +2.9 percent.
Weak incoming data from the euro zone also weighed on the session, which includes Germany, was noticeable.
The German gross domestic product, GDP, was a preliminary discussion with a seasonally adjusted 0.1 percent in the second quarter of 2011, compared with the previous quarter. In annualized terms, GDP was up by 2.7 percent. Market expectations were a quarterly rate of +0.4 percent and an annualized rate of +3.1 percent, according to Dow Jones Newswires.
GDP in the EMU countries rose by 0.2 percent in the second quarter of 2011 compared to the previous quarter. The rate increase was 1.7 percent. Analysts had expected a quarterly rate of +0.3 percent and an annual rate of +1.8 percent.
At the leading European stock markets there were mixed developments. London's FTSE 100 index rose by 0.1 percent to 5357.6. Paris stock exchange fell as the CAC 40 index went down 0.2 percent to 3230.9 and in Frankfurt, the DAX index dropped 0.4 percent to 5994.9.
By Scancomark.se Team
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