Stockholm Stock Exchange followed the renewed market vitality and defied all doubts


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Tuesday, 09 August 2011
Stockholm Stock Exchange traded with violent swings on Tuesday, where the market changed its face several times. Financial players are now waiting with bated breath for news from Tuesday night's Federal Reserve meeting in hopes of indications of further monetary stimulus.

Stockholm Stock Exchange, the OMXS30 index, ended 3.1 percent up which means that closing on the day's highest level after yesterday’s obliteration.  Turnover on the Stockholm Stock Exchange was as high as Skr32 billion, while consolidated sales, which also includes Chi-X, Bats, Turquoise, and Burgundy was jaw-dropping Skr44 billion.

On Tuesday, the OMXS30 index touched 860-line, which has not happened since 2 October 2009.
Standard & Poor's downgrade of U.S. credit ratings has led to a strong turbulence in the markets around the world, leading to a flight to finance hard currency such as U.S. government bonds, gold, yen and Swiss francs.

"Reactions to the downgrade is predictable; U.S. politicians blame each other and the S & P  and China criticizes U.S. politicians for not taking responsibility, while investors are concerned about U.S. growth and fleeing to safer investments, "wrote the East Capital's chief economist Marcus Svedberg in a market comment.

Investors are now pinning their hopes on the Federal Reserve, leaving the interest rate statement at 20:15 on Tuesday evening. The increasing turmoil in financial markets has increased speculation that the Fed can try to do anything possible to increase confidence in the market.

"The markets have come down on the lows, too fast. We expect a hefty rise in the stock market given how oversold the market is. We also believe that the Federal Reserve will try to stabilize things and reiterate its strong commitment to do more support if the situation demands, "said Paul Zemsky at ING Asset Management in New York, speaking to Bloomberg News on Tuesday.

All the four major Swedish banks closed with gains, but was more modest than the market as a whole. Industry indices for the banks increased by 1.6 percent to 314.0 points.

On the large cap list of the 30 most traded shares, most were up for almost all companies. One exception was the family owned company Stenbeck media group MTG, which fell 1.5 percent to Skr 341:30.
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