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Big stock market crash in Norway: The krone weakens markedly

The downturn before the weekend only continues on Monday.


The case is updated throughout the day.

The Oslo Stock Exchange is down 2.5 percent (see the graph below) while a euro now costs as much as 10.15 kroner, clearly the most so far in 2022.

The stock market actually opened up, while having had a huge fall over the morning. The fall comes in the wake of global uncertainty surrounding the omikron virus and earnings for a large number of companies.

The stock market crash is happening despite the fact that Oslo Børs’ by far most valuable company, Equinor, is up slightly. The fall also comes on top of a stock market fall of 1.85 percent on Friday, and the stock market is down as much as 5.6 percent on Monday last week.

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Weakened

The Norwegian krone also had a very weak day on Friday. The Norwegian currency has weakened from NOK 9.92 for one euro on Thursday night to today’s level.

The decline is part of a larger fall in the entire global financial world, and the Oslo Stock Exchange is set to fall for the sixth day in a row.

The technology-heavy Nasdaq index, which includes giants such as Apple, Microsoft, Facebook, Tesla, Netflix and Amazon, fell 7.6 percent last week, the largest fall since 2020.

The stock market was particularly burdened by Netflix, which fell over 20 percent on Friday, after presenting subscription figures that were much worse than expected.

Click for growth stocks

DNB Markets writes in the morning report that the decline in share prices has been particularly marked for technology companies and other growth companies. For these companies, earnings are expected to arrive some time in the future.

When the risk-free interest rate increases, it will have a negative effect on the valuation of future earnings. DNB writes that since December, the rise in long-term interest rates has been significant.

This reflects how the US Federal Reserve has reversed its monetary policy.

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Fear of interest

It is the fear of inflation and the fear of interest rates that primarily weighs on the stock market. Handelsbanken Capital Markets writes in the morning report that the market is now looking forward to the interest rate message from the US Federal Reserve on Wednesday night Norwegian time.

No change in the key interest rate is expected now, attention is focused on the signals ahead. It can lead to three to four interest rate increases this year, as here at home.

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