Market News
The
Market Quotes Powered By Forexpros, the Forex, Futures, and Stock Markets Portal.
Stockholm and most European major markets crush barrier on Friday as market got excited by crisis solutions
Friday, 29 June 2012
Surprising
news from the EU summit was good for risk appetite in the Stockholm
stock market n Friday and it ended in a crushing highest level ever
seen this year.
The agreements included by the European monetary
Union - the European Stability Mechanism (ESM) loan to Spanish banks
will not have senior creditor status which effectively takes pressure
off the country’s credit spread; the ESM will also be allowed to
directly recapitalise banks; the rescue funds themselves will be used
more flexibly to support compliant countries; and finally, the European
Central Bank (ECB) will be acting as an agent for the rescue funds in
market operations.
Also the U.S. data that was received during the day were as expected and did not affect mood in the stock market.
The
news fuelled a surge in stock markets across Europe today, with
benchmarks in France, Italy, Spain and Germany registering gains of 4-6
percent by the close. London's Footsie and the three major indices in
the US were up around 2 percent each.
US stocks were making
ground despite consumer sentiment data for June hitting its lowest
levels since December and consumer spending falling in May for the
first time since November.
While more news will likely leak
out about the meeting throughout the rest of the day and over the
weekend, investors are already looking ahead to policy decisions in the
UK and Europe due next Thursday. The Bank of England is widely expected
to ramp up its asset purchase programme, while the ECB is predicted to
cut rates to a new low.
Stockholm Stock Exchange OMXS30 index
closed 4.0 percent up on 1019 levels. The turnover on the Stockholm
Stock Exchange was Skr13.5 billion, and including trade on Chi-X,
Burgundy, Turquoise and Bats was Skr15.4 billion.
On the company front Atlas Copco A, Volvo and Sandvik were noted between 6.4 and 7.4 percent up.
The major banks also closed the heavily as they were recorded between 3.4 and 5.6 per cent higher, with Nordea in the top.
Nokia was today's big loser in the large cap index, - 3.8 percent.
"Nokia
is a chapter of its own, it has enormous problems. Market has not
recovered from the shock of last week, and then the Lumia cannot be
applied on the Windows 8. The market has had enough. Expectations for
the third quarter are bad "notes the broker who spoke to Swedish media
sources.
Defence group Saab received an order from the Armed
Forces worth Skr3.6 billion plus an option for a further Skr2 billion,
the current development and maintenance of Gripen until 2016 pushed its
Shares to close up 6.2 percent.
Index Heavy H & M did not see the same rally tendencies as the rest of the stock market, and closed up 2.2 percent.
Commodity-related
had a strong trading in the wake of rising prices on the London Metal
Exchange and a higher oil price. SSAB and Boliden was up 7.1 and 5.6
percent, while Lundin Petroleum closed slightly lower, 3.1 percent up.
Africa
Oil had a turbulent day of trading, when it was struck by poor drilling
news from Kenya in the morning: an unexpected geological formation is
found. Shares recovered slightly in the afternoon, but closed 4.6
percent down.
KappAhl's report showed that sales fell more than
the low expectations, but stock levels were reported to be
satisfactory. The share peaked up 6 percent, but then shut down 1
percent.
The krona appreciated against the dollar and the euro.
Next
week, interest statements from the Swedish central bank or the Riksbank
will be expected as well as information about the purchasing managers'
index for services and statistics on the number of newly registered
passenger cars in June.
By scancomark.se Team
What do you think about this article and us? Please leave a comment!