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“No wonder we find the first speed dump on the rebound we’ve seen,” says Alexandra Morris, chief investment officer at Skagen Funds.
In recent days, the Oslo Stock Exchange has been strongly influenced by the growing market turmoil in global markets.
On Thursday, the main index fell 2.76 percent.
– The trade has been marked by greed for a couple of weeks, and now fear returns. There is great uncertainty around the virus, both in relation to social distancing and that the development of the vaccine may take longer than initially thought.
The most important indices in Europe also point downwards. On Thursday afternoon, the Frankfurt DAX index was down 2.6 percent, while the Euronext 100 in Paris was down 2.7 percent.
In Norway, the Oslo stock exchange is toppled by heavyweights like Equinor, DNB and Aker BP. The former was down 2.5 percent on the rise, while the DNB was down 3.9 percent and Aker BP was down 5.3 percent.
The newcomer Pexip did better. The share price prior to the start of trading was NOK 63, but just after the director of the stock exchange, Øindis Amundsen, rang the bell, the stock rose to more than NOK 90. Among other things, he awarded a millionth victory to the mountaineers of Aksel Lund Svindal and Kjetil Jansrud.
Pexip is the most traded today with 809.7 million on the first day of trading. The share price ended at NOK 87.5.
– Too optimistic
In the United States, the major indexes fell about two percent on Wednesday after Governor Jerome Powell’s bleak outlook.
“Both Powell’s statements at the Fed about more difficult times in the United States ahead, and IMF statements that the next release of estimates for world economic growth will shrink further, is enough to make stock markets values go down, “Morris said.
On Thursday afternoon, Wall Street opened about one percent, after last week’s job numbers showed up an hour before the stock market opened.
While a clear decline was expected before 2.5 million new unemployed last week, the figures showed that there were 2.98 million new unemployed in the United States. On the positive side, it was the first time that the numbers hit less than three million new unemployed in the week since the crown crisis hit completely.
– There are indications that we have been overly optimistic about how quickly we will tackle the virus. In the United States, for example, doctors who spoke at a Senate hearing said that schools may not open until the fall.
Trump effect
While President Donald Trump has increased pressure on China, including by ordering a federal pension fund to hold all of China’s shares, Asian stock exchanges have fallen several days in a row.
In Asia, more and more countries are trying to reopen their economies this week after months of restrictions and domestic quarantine. There have been new outbreaks in, among others, South Korea and China, but they must have been identified earlier, and authorities have said they are in control.
“The fact that the US and China speak negatively about each other is not positive, but it appears that below the surface, trade talks are still on the right track,” Morris believes.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We want you to share our cases using a link, which links directly to our pages. Copying or any other use of all or part of the content may only be made with written permission or as permitted by law. For more terms see here.
