Moderate decline in the Oslo Stock Exchange after a strong recession in the US.

The Oslo Stock Exchange fell about 1.3 percent on Friday after a sharp drop in US stock exchanges on Thursday. The stock market crash has spread to Asian markets on Friday morning, and futures contracts are also pointing to a further drop when US stock markets open later on Friday.

The Nasdaq Composite heavy-tech stock index, which is home to giants Apple, Amazon and Microsoft, among others, on Thursday at its biggest drop since mid-June.

The renewable and “green” companies, the hydrogen company Nel and the mortgage company Tomra, are the two most traded stocks on Friday morning, and at the same time they are falling sharply.

Renewable fall

• Nel falls above five percent.
• Empty drops about three percent.
• Norwegian released traffic figures for August on Friday, which unsurprisingly showed a sharp drop in passengers. Sparebank 1 Markets recently lowered its target price on Norwegian stock to NOK 0.2 from the previous NOK 1.0, according to TDN Direkt. A sales recommendation is repeated. The stock fell about three percent on Friday.

Classic correction

Chief Investment Officer Leif-Rune Rein believes that what we see in the US and Asia is a classic correction, after a very boom period.

– Yes, I think it is. It is quite simple because it has risen rapidly in recent days. With the relatively strong drop we had yesterday in the United States, we are back where we were a week ago. I don’t think anything fundamental has changed.

He notes that although US markets have risen sharply, uncertainty has not been low and refers to the vix index, often called the “fear index.”

– We have seen fear indices disappear. Even though S&P is at a “record high,” the vix index was not below average, so investors have been insecure the entire time and many are negative.

Despite the fact that Norway has not experienced the same sharp rise as the United States, it believes that the Oslo Stock Exchange will fall on Friday.

– Yes I think so. Even though Oslo hasn’t risen in the last few days, I think Norway will normally fall a percentage or two from the start of today, but not much more.

The Nasdaq index fell about five percent and the other two key indices S&P 500 and Dow Jones fell 3.51 and 2.78 percent, respectively.

“Maybe instead”

“After writing about a record August in world stock markets earlier this week, perhaps it was appropriate that yesterday there was a drop in stock markets,” macro analyst Oddmund Berg at DNB Markets writes in a morning report on Friday.

He believes that the fall cannot be linked to a special event that indicates a change in risk sentiment, but that most explain it as a guarantee of profit, that is, that prices have risen so much that some will notice the profit.

“Illustrated by Tesla’s five-fold increase since March, where the $ 200 price increase occurred since August 11, currently appears to be a plausible explanation,” he writes.

Shares of Tesla are up 386 percent this year, but fell 9 percent on Thursday.

Berg believes the explanation is also supported by the fact that there has not been a correspondingly large movement in the bond markets.

“So this was probably a specific case of stocks. It remains to be seen how much unrest there will be in the market as a result of the move itself,” he writes.

“Helpful reminder”

Halfdan Fenwick Grangård, senior economist at Handelsbanken Capital Markets, also cannot identify a clear reason behind the decline in the US stock market. He notes that the broad S&P 500 Index posted its biggest decline since mid-June.

“The 3.5 percent drop was a helpful reminder for those who had to believe that the stock market is only going one way,” he writes in his morning commentary.

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He points out that it was the IT sector that fell the most, after IT stocks have seen adventurous growth in recent weeks.

“So some investors may have opted to take profits after a more or less continuous rally since late March.”

Nordnet analyst Roger Berntsen believes in a sharp drop in the Oslo Stock Exchange early on, and expects the main index to drop 1.3 percent early on, possibly within the 1.7-0 range, 9 percent.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content may only be done with written permission or as permitted by law. For more terms, see here.