Stock Market Decline After Trump’s Coronate Positive Test – E24

The main index on the Oslo Stock Exchange fell 0.83 percent just after Friday’s opening time, and at 11.30 am it was down 0.47 percent.

Markets around the world reacted to the news of President Donald Trump’s corona infection. First lady Melania Trump also tested positive.

At the top of the rotation, Nel is down 2.32 percent, Kahoot is up 2.95 percent and Equinor is down 1.16 percent. DNB and Tomra were down 0.16 and 3.25 percent respectively at 11:30.

Kahoot rises after presenting a market update before the stock market opens. Here, the company reported billed revenue of $ 11.6 million in the third quarter, up from $ 3.4 million last year.

Otherwise, Tomra’s stock will be rejected after brokerage Pareto Securities assumed hedging of the stock with a sell recommendation, according to TDN Direkt. The target price is set at NOK 285.

Aker Solutions is up more than 10 percent after receiving a $ 1 billion contract for Conocophilips on Thursday.

Goodtech was the winner of the stock market at the opening of the stock market with an increase of more than 13 percent. At 11.30 the share is up 9 percent. Goodtech rises after investor Øystein Stray Spetalen bought 1.6 million shares of the company on Thursday, corresponding to a seven percent ownership stake.

Rec is also among the stock market winners on Friday with a gain of more than 10 percent after just a few hours of trading. The increase comes a day after the company was able to report that the Tax Administration filed a multi-year tax dispute with the company.

– Create uncertainty

It was a little before 7 a.m. Norwegian time when Donald Trump confirmed that he and first lady Melania Trump tested positive for the coronavirus.

The development in the market slowed down right after the news.

– It creates uncertainty, especially as the election campaign is in the final sprint, and has caused indicators to point to a red start on the stock exchanges today, writes DNB Markets chief economist Kjersti Haugland in a morning report.

– The crown, which has already had a day of weakness behind it, partly due to the fall in oil prices, is falling even more in value, he says.

Christian Lie, chief strategist at Danske Bank, also says news about Trump creates further uncertainty and an immediate fear reaction in the market, according to TDN Direkt.

“It is mainly a reaction triggered by algorithm operators, reacting to such dramatic news about the president,” Lie told the news agency.

– Trump has not clearly indicated that he will resign peacefully if he loses. There is great uncertainty associated with the election, and more unrest around and after the election is praised than normal. This reinforces it, says Lie.

Fall in oil prices

The price of oil (burned spot), which before the news was around 40.57 dollars a barrel, has fallen to 39.44 dollars at 11.30. For the day, the decrease is 3 percent.

In the United States, S&P 500 futures fell immediately after the announcement, falling 1.6 percent at lunchtime.

In Europe, all stock exchanges are in the red after a few hours of trading. The Stockholm Stock Exchange has the biggest drop with a drop of 1.4 percent.

Additionally, the Asia Pacific stock exchanges reacted negatively. In Tokyo, the Nikkei index registered a fall of 0.3 percent, while the Singapore Stock Exchange fell 0.7 percent. The Sydney Stock Exchange led the decline with a drop of 1.4 percent. The Chinese and Korean stock exchanges are closed.