The main index on the Oslo Stock Exchange finally rose by 1.14 percent on the first trading day of the week, After Friday, last week was the worst day in the stock market so far this year.
The recovery came after a turbulent week, as financial markets were shaken before the end of the week. A newly discovered virus type discovered in South Africa, now called an omicron variant, has caused the European Union and the United Kingdom, among others, to ground flights from South Africa.
On Monday, there was a fairly broad rally of heavy companies that pulled the stock exchange. Equinor stock rose 3.3 percent and became the most heavily traded stock today. Aker BP, DNB, Hydro and Yara, the top five most traded ones, all finished the day in the plus sign.
Today’s e-learning company Kahoot was the biggest loser with a decline of more than four percent. Frontline and Ginsedije were all down about one and a half percent, while Mooy, Urkla and Adventa all finished just barely in the red.
Global stock market crash
It started with a sharp decline in the stock market in Asia. This extended to Norway and Europe, where the main index on the Oslo Stock Exchange fell 3.2 percent – the largest drop so far this year.
In the US, the S&P 500 is down more than 2%.
Part of the decline in Oslo can be attributed to a drop in the price of oil by more than 11 percent on the same day. This significantly weakened the Norwegian krone.
On Monday, the price of oil recovered somewhat. At 3 p.m., the price of a burning barrel of North Sea oil, which is used as a reference for the worldwide oil trade, is $76.68. That’s an increase of just over five percent.
On the Oslo Stock Exchange, Equinor, Aker BP and Norsk Hydro were the most heavily traded stocks on Monday.
Uncertainty is reduced
Despite declines in the global stock market, the news over the weekend gave reason for optimism, Handelsbanken wrote in his morning report.
– But fortunately the news over the weekend was not alarming, so now we are also seeing positive movements in the market again: According to South African health experts, so far Omikron appears to be giving off mild symptoms. However, the next few weeks will provide more information about the characteristics and severity of the new virus variant, how it responds to vaccines, and what government measures are being put in place.
In addition to the news regarding the new viral surge, important key numbers will affect the market in the coming week. In October, the US job growth rose, and the US labor market report for November will be published on Friday.
– The market expects at least strong growth in employment in November; Employment outside agriculture is expected to rise to 535 per thousand. But going forward, we can see again that job growth is slowing again, Handelsbanken wrote.
DNB Markets wrote in its morning report that uncertainty in global markets is easing after the stock market crash on Friday.
Throughout the week, the focus will also be on additional interest rates and inflation expectations. On Tuesday and Wednesday, there will be a new round of global PMIs, and starting Wednesday, we will also receive more updates on the situation in the US labor market, writes DNB Markets.
Crisis meeting in the G7
The Tokyo Stock Exchange fell about 1.6 percent on Monday. In Hong Kong, the stock market fell by just under one percent, and in Shanghai, China, the stock market closed somewhat unchanged.
The World Health Organization (WHO) has classified omicron as “of concern”. The alpha, beta, gamma and delta variants were previously classified as homozygous. The United Kingdom summoned G7 health ministers to an emergency meeting on the Omicron variant on Monday. The variant, which is believed to be highly contagious, has been detected in several European countries.
Among other things, the variant was confirmed in Denmark.(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.
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