Strong stock market upswing following lowered US interest rate

The risk appetite on the market seems to have gained new strength. The Stockholm Stock Exchange rose sharply and broadly following Wednesday's unexpectedly large interest rate cut by the US central bank Federal Reserve (Fed).

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Strong stock market upswing following lowered US interest rate
Photo: Anders Wiklund/TT

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The OMXS index rose 1.8 percent. The increase was broad with 28 out of 30 of the most traded stocks in the OMXS30 index on the plus side.

Among the heavyweights, interest-rate sensitive companies such as the real estate company SBB and the cloud service company Sinch, surged 12.6 and 5.0 percent, respectively.

Against the trend, Tele 2 and Telia fell 1.1 and 0.6 percent, respectively.

Among other companies, the electronics manufacturer Note stood out, whose share price plummeted 14.0 percent after a profit warning.

The leading European stock exchanges also rose in line with Stockholm. On Wall Street, prices had also risen significantly after a few hours of trading.

The krona immediately rose after the interest rate decision on Wednesday, up almost ten öre against the dollar. However, the Swedish currency fell back sharply during night trading.

After a slight recovery, the krona was back at 10.17 kronor at 17:30 on Tuesday.

The OMXS index has risen 11.1 percent since the turn of the year with Thursday's increase.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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