Fri, 27 May 2022

STOCKHOLM, Jan. 24 (Xinhua) -- The Nasdaq Stockholm AB, formerly known as the Stockholm Stock Exchange, plummeted on Monday with the OMX Stockholm 30 (OMXS30) index down more than five percent at times and eventually closing at minus 3.9 percent.

It was the biggest drop since the early days of the pandemic. The OMX Stockholm All-Share (OMXSPI) index fared even worse, ending the day on minus 4.5 percent. This wider index includes automaker Volvo Cars, the share of which were down eight percent on Monday.

Since this year's peak on Jan. 5, the OMXS30 has lost ten percent of its value, a development analysts say has been fueled by a combination of factors, including an expected rate hike from the U.S. Federal Reserve.

"Inflation and interest rate hikes have caused the stock market turmoil that we have had since the beginning of the year," Frida Bratt, savings economist at Nordnet bank, told the news agency TT. "Now we also have the tense Russia-Ukraine situation. It is not a cocktail that investors like, and many want to withdraw from the market."

Her view was shared by Mattias Isaksson, head of strategy and allocation at Swedbank, who described the current situation as a snowball effect, where decline fuels further decline.

More Sweden News

Access More

Sign up for Sweden News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!