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The stock market crash in the United States and Asia is spreading to Norway. – This may be the beginning of a larger correction than we have had so far, says Investment Director Leif-Rune Rein at Nordea.
The Oslo Stock Exchange has not risen as much recently as the US stock indices, where crown winners in IT are taking up more space. Friday’s slide is also expected to be less than Wall Street’s the night before.
Fredrik Hagen
Published:,
Global stock markets are under pressure after a dramatic slide on Wall Street on Thursday.
Chief Investment Officer Leif-Rune Rein at Nordea Liv does not believe that yesterday’s US stock slide is the beginning of something big and dangerous.
– It may be the beginning of a correction greater than what we have had so far. After yesterday’s stock market crash, stock markets have returned to the levels of Tuesday last week. It’s not a big drop, Rein tells E24.
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Rein points out that the market has risen directly recently, that information technology has gone further and that the sector is now taking the greatest impact. He believes that the correction can last quickly a week, but not much longer.
– There will be a rebound in the economy. The activity will recover, both between companies and between consumers. But we will not return until a long time ago to the level we had before the crisis.
The stock market was down 1.6 percent from the outset, before the slide slowed somewhat in early trading. The leading index is down 1 percent to 843.71 points at 09.19.
The chart below shows how the main index performed on Friday.
The stocks that weigh the most on the stock market are the classifieds company Adevinta, which is down 3.93%, the hydrogen company Nel is down 5.71% and the mortgage company Tomra is down 3.11% .
The price of oil is also falling, but not by as much. A barrel of North Sea oil costs $ 43.72, after a 0.64 percent drop since midnight. The price has fallen since the Oslo Stock Exchange closed on Thursday.
Skepticism and fear
The Vix fear index, which measures expected short-term volatility in the S&P 500, rose 26.46 percent to 33.6 points on Thursday. These are roughly the same levels as before people realized that the coronavirus actually started spreading in March.
Rein says that the market will be supported by financial data, that nothing from central banks has changed and that they will continue to pump money.
– Investors who have been skeptical despite the rally may think that now it is finally my turn to enter the market and participate in the rally.
Rein points out that there is a negative real return on the interest rate side, which means you lose money.
– Oslo has not kept pace with the recent recovery and has been in the red. Europe has fared worse in this update than the United States. There is more energy and finance in Europe, while the United States has more IT. The energy sector expects a drop in earnings, while TI expects a growth in earnings, says Rein.
Investment Director Leif-Rune Rein at Nordea Liv.
Nordea.
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– natural
Wall Street’s top three stock indices fell sharply on Thursday, with the Dow Jones falling 2.78 percent, the Nasdaq Composite down 4.96 percent and the S&P 500 down 3.51 percent.
– I think it’s natural. We’ve had a rally in the last eight of the last nine days, so now it’s only natural that we get a break on the ground. This is a “reality check,” portfolio manager Olav Chen at Storebrand told E24 on Thursday.
At the same time, it is heading for another difficult day on Wall Street, where futures contracts point to a further stock market crash. Investors are waiting for the US “non-farm payroll” labor market report, which will show how many jobs were created outside of agriculture in the US in August.
Updating …
