Market Plummet: Global Stocks Drop Amid Economic Uncertainty
At 11:40, the OMXS30 was down 2.4 percent, trading at 2,408. Stock worth a total of 10 billion SEK had changed hands on the Stockholm Stock Exchange. The leading European markets also saw a grim outlook, with Frankfurt’s index down about 2.5 percent, and Paris and London experiencing declines of just over 2 percent.
The sharp declines in the stock market follow lower-than-expected employment data in the US, contributing to increased concerns about a global economic slowdown and fears that the Federal Reserve may be slow to prevent a recession.
Market interest rates on both sides of the Atlantic declined on Monday. SEB now prices in a Swedish repo rate of 2.68 percent by the end of the year, 25 basis points lower than a week ago. For the August meeting, a 30 basis points lower rate is priced in, more than the 25-point cut that analysts have agreed upon recently.
US Secretary of State Antony Blinken has informed G7 counterparts that Iran and Hezbollah may attack Israel as early as Monday.
At the bottom of the Swedish large-cap index were cloud communications company Sinch and investment company Kinnevik, with declines of 7 and over 4 percent, respectively.
Defensive stock picks fared better in the downturn. SCA fell about half a percent, and Essity dropped around 1 percent.
Volvo traded down just under 4 percent after relevant statistics on order numbers came from industry organization ACT Research. Orders for heavy trucks were down 8 percent compared to June and 13 percent lower than in July last year.
Online brokers Avanza and Nordnet reported higher net inflows in July. However, their stocks traded down nearly 1 and over 3 percent, respectively.
Diagnostic company Immunovia’s next-generation test for pancreatic cancer detection has been included in a US government-funded study. Immunovia also released its interim report on Monday morning, leading to a 10 percent drop in the stock.
Jondetech surged 9 percent on news that the sensor technology company was selected by a Tier 1 company in South Korea to develop three new prototypes for a potential market launch.
In analysis news, Pareto Securities raised the target price for Millicom to $32 from $30.
Analysis: The global stock markets experienced a significant downturn due to lower employment data in the US and concerns about a global economic slowdown. This could impact various sectors and individual companies, leading to stock price declines and affecting investors’ portfolios. It is essential for investors to stay informed about market developments and adjust their investment strategies accordingly to navigate through these uncertain times.