Oslo Børs, which fell 2.59 percent on Monday, continued its decline immediately after the stock market opened on Tuesday. The main index fell by 0.9 per cent when the stock exchange opened, but began to recover a short time later. When the stock exchange closed its doors on Tuesday, the main index was at 1,205.33 points – up 1.38 per cent. Four of the five most traded stocks rose on Tuesday. Equinor, which was the most traded share, fell 0.5 percent, while Aker BP (+1.14 percent), DNB (+1.62), Yara (+0.35) and Norsk Hydro (+1.52) increased in value. In Europe too, the stock market arrows seem to be pointing upwards. The London index FTSE 100 was up 1.18 percent just before 5 p.m., while the CAC 40 in Paris and the DAX 30 in Frankfurt were both up more than 2 percent. Fall in Asia In Asia, the stock markets ended with a fall of more than 2 per cent for the Hong Kong Hang Seng index and for the Japanese Nikkei index. The fall came after the bank collapse in the US started before the weekend. The market has changed its view of what may happen to the economy in the future, and thus also how much the central banks will have to raise interest rates to cool down inflation. – There are completely incomprehensible drops in interest rate expectations, says chief economist Harald Magnus Andreassen at Sparebank1 Markets. Thinks the central bank will drop six interest rate hikes In the US, the central bank will hold an interest rate meeting next week. In the past year, the key interest rate in the world’s largest economy has increased from 0.25-0.50 per cent to 4.50-4.75 per cent. This is how the central bank has tried to curb the rapid rise in prices. The interest rate increases have created trouble for banks with securities that become less valuable when interest rates rise. In the past week, three US banks have been taken over by the authorities because the value of their assets shrank at the same time as customers withdrew their money. – Banks normally get into trouble because the customers cannot repay the loans. This mainly happened because interest rates rose. There was a limit to how much the economy could withstand before things went wrong, says Andreassen. Read also: Norwegian expert on the banking crisis: – A textbook on bank collapse The fact that the banks ended up in trouble means that the market has gone from believing that the US central bank would raise interest rates over the course of the year, to believing that there will be an interest rate increase of 0.25 percentage points in March before the central bank gives way. – We are seeing the biggest drop at the short end of the yield curve in the US since 1987. There is a drop in interest rate expectations over the next nine months of 1.6 percentage points. Six interest rate increases have been removed. There are absolutely extreme changes in the market, says Andreassen. Chief economist Harald Magnus Andreassen at Sparebank1 is keenly following developments in the market. Photo: Ole Berg-Rusten / NTB – Overreaction Interest rates in Norway are also expected to be lower this year, and that the interest rate peak will be reached at 3 per cent. The fall in the view of how high the interest rate can be can quickly turn around again, according to Andreassen. – I mostly believe that there is an overreaction in the interest rate market. But I’m not sure about that. But if the reaction is to be correct so that all these interest rate increases do not come, it is because the economy will be far weaker than we imagined, he says. In the commodity market too, the belief in a weaker economy going forward has resulted in lower oil prices. A barrel of North Sea oil has fallen by $2.61 in the past week, and costs $80.29 on Tuesday. Mixed picture in Europe The indices in Europe alternated between upswings and downswings on Tuesday morning. This is the situation for the leading indices in Europe at 11:00 a.m.: The broad STOXX Europe 600 has increased 0.17 percent DAX in Frankfurt has increased 0.50 percent FTSE100 in London has decreased 0.29 percent CAC40 in Paris has decreased 0.18 percent IBEX35 in Madrid has increased 0.31 percent FTSEMIB in Milan has increased 0.03 percent OMX Stockholm 30 has increased 0.40 percent
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Oslo Børs from fall to marked rise on Tuesday – news Norway – Overview of news from various parts of the country
