The stock market was painted in shades of red on Tuesday following the introduction of tariffs by the US, marking one of the worst days for the Stockholm stock exchange in nearly two years. However, a glimmer of hope has emerged. US Trade Minister Howard Lutnick reportedly told Fox Business that a trade compromise with Mexico and Canada could be announced as early as today.
This agreement is said to be a more comprehensive compromise, not just a temporary suspension of tariffs, according to Lutnick. His statement caused US futures to rise and European markets to rebound significantly. Additionally, Germany has announced a loosening of its debt brake in order to allocate more funds to defense.
On the Stockholm stock exchange, 25 out of 30 major companies are on the rise. Nibe leads the pack with a 7% increase, followed by defense company Saab, whose stock is up 6%. Defense company Mildef is surging by double digits, up 11%.
Yesterday, Nibe held an investor call. At the top of the Stockholm stock exchange are also engineering companies like SKF, Sandvik, and Atlas Copco, all seeing gains of 4-5%.
Real Estate Companies Weighed Down by Rising Rates
At the bottom are more defensive companies. Astra Zeneca is the biggest loser, down 2%. Real estate companies are having a tough day on the stock market as European interest rates rise. Corem, Wallenstam, and Balder are all down around 3%, while SBB is down 1.5%.
This fluctuation in the market reflects the delicate balance of global economic forces and the impact of geopolitical decisions on investor sentiment. As trade negotiations continue and countries adjust their economic policies, the stock market will continue to react in unpredictable ways. Investors should stay vigilant and informed to navigate these turbulent times in the financial world.