Midsummer and vacation times. However, for the companies on the Stockholm Stock Exchange, an intense period awaits. In just over two weeks, the majority of the large companies will report the results for the second quarter, with Ericsson first out among the big ones (July 15).
The three months to be reported have contained customs chaos, geopolitical unrest and continued question marks around the economy. Despite this, the Stockholm Stock Exchange's OMXS index has risen by about 6 percent during the last quarter, somewhat surprisingly, notes Mattias Isaksson.
I can willingly admit that I am surprised by how strong the market has been in recent months, he says.
Reasons for optimism
Isaksson notes that there are indeed reasons for market optimism in the form of lowered interest rates, most recently from the Swedish Central Bank, and announcements of fiscal stimuli, including from Germany.
But with this said, we have a number of uncertainties that have not really stuck with the market. They have had a very high tolerance, he says, referring to the customs row.
During the previous reporting period, the companies highlighted the uncertainty surrounding how the customs situation would affect. With Trump's deadline for customs discussions set to July 9, these question marks remain, says Mattias Isaksson.
I do not think that the reports themselves will be something that makes the market very scared, but at the same time, there is very little that instills more optimism or security. I have a hard time seeing that we will get reassuring messages.
Neutral view
Swedbank currently has a neutral view of the stock market and Mattias Isaksson sees no reason to increase exposure at present.
Although the Stockholm Stock Exchange is sensitive to the economy due to a number of heavy industry companies, Mattias Isaksson sees an advantage in investing in the Swedish stock market, namely the weakening of the dollar.
An upturn in the US stock market can be quickly offset by currency movements. We have now had a strong US stock market, but as a Swedish investor, you have not been able to take part in it due to the currency weakening. I also think that we will see the dollar weaken further during the second half of the year.
