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Stock Market Weighed Down by Interest Rate Fears – Dustin Plummets

A wave of interest rate frost swept across the market on Tuesday. The Stockholm stock exchange's broad OMXS index fell by 0.8 per cent. The technology reseller Dustin plummeted after an interim report.

» Updated: 20 September 2024, 01:47

» Published: 02 July 2024

Stock Market Weighed Down by Interest Rate Fears – Dustin Plummets
Photo: Anders Wiklund/TT

A wave of interest rate fears swept across the market on Tuesday. The Stockholm Stock Exchange's broad OMXS index fell by 0.8 percent.

Tech reseller Dustin plummeted after a quarterly report.

Among the most traded shares in the OMXS30 index, defence contractor Saab and major bank Swedbank fell the most, down 4.3 and 3.1 percent, respectively.

But the decline was broad: 26 of 30 OMXS30 shares fell.

Dustin plummeted 7.9 percent after the company presented a quarterly report with unexpectedly low profits.

It was also downhill for Pricer, a specialist in digital solutions for retailers, after the Financial Supervisory Authority announced that the authority had launched an investigation into suspected insider crimes. The share fell 5.4 percent.

In the bond market, long-term interest rates pushed upwards – also in Sweden, where the 10-year interest rate rose by around 0.10 percentage points to around 2.30 percent on Monday. At the close of trading on Tuesday, it stood at 2.29 percent.

"For market interest rates, the direction was clearly higher, primarily driven by the increasing likelihood of a second term for Trump in the White House after the weekend's debate," writes major bank SEB in a morning letter to customers.

This is added to by new hawkish signals from the European Central Bank and new inflation figures from the eurozone, in line with expectations.

Higher interest rates typically hit risk appetite and demand for more risky assets such as shares.

On Monday, the OMXS rose by 0.6 percent. Since the turn of the year, the index has risen by 7.8 percent.

European stock exchanges fell on Tuesday, although slightly less than the Stockholm Stock Exchange.

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By TTThis article has been altered and translated by Sweden Herald

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