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Stockholm Stock market in freefall as weary looks and nervousness grip the market


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Thursday, 18 August 2011
Stockholm Stock Exchange continues it’s downwards match, tripped and fell heavily on Thursday afternoon and the large cap index OMXS30 was almost 6 percent down by 6 o'clock local time.

Stockholm Stock Exchange continued its downward match on Thursday afternoon. Note that this market has not actually performed well this year and despite the current falls, it has actually been falling since the start of this year and nothing seemed to have confidence this market to make some gains.

At 16 o’clock local time, the main stock market index slumped down 5.5 percent down, while the OMXS30 was the 6.0 percent down. The cause of this slump is directed to a wrong order in Germany, but why the decline became so strong in the afternoon is difficult to explain.
We have asked around and most people are only looking at the USA, though nothing so bad is coming from the USA other than what we already know.

"There have been a little worse statistics in the U.S., but that it would push down the stock market almost 2 percent remain uncertain. There is a sign of a huge nervousness in the market, "said Anders Bruzelius, equity research director at Swedbank.

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Consumer prices in the U.S. rose in July by 0.5 percent on a monthly rate and by 3.6 percent in annualized terms. It was clearly more than expected. Also, core inflation went up. The relatively high inflation rate reduces the likelihood that the Federal Reserve will launch a third round of support in the purchase of government securities, otherwise known as quantitative easing (QE).

But inflation is not only rising in the USA – most of euro zone and Britain sees their inflationary position shooting up.

The major Swedish banks got intense beating. Most of those which were given a big whip are Swedbank which sloped by over ten percent. Handelsbanken fell over seven percent. Nordea declined by 8.3 percent, SEB fell by 8.9 percent.

Most traded, Volvo AB's B-shares, which stood at -6.1 percent at the 15 hours, followed by   Ericsson and H & M, which both backed by more than 2.5 percent in the afternoon.

Several of the major exchanges in Europe fell by more than 5 percent in the afternoon, then negative unemployment statistics from the U.S. and a weaker than expected U.S. Philly index lowered the market mood further. In Frankfurt the DAX index at 16.30 fell with 5.4 percent, the London FTSE index had fallen 4.1 percent and the Paris CAC Index went down by over 4 percent.
By Scancomark.se Team


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