Mood soured on European stock exchanges, with arrows pointing down in Oslo on Wednesday. Experts explain the decline with inflation fears.
The main index fell 1.64 percent to 1,154.8 points. In Europe, an aggregate index fell 1.2 percent, while US equity markets opened lower.
Danske Bank chief strategist Anders Johansen says interest rates are the most important thing to watch right now.
– Because if inflation were significantly higher and we enter a period of rising interest rates, other asset classes will fall, he tells E24.
The chief strategist says inflation lasts longer than many previously thought. Inflation has risen to high levels in the United States, but there has been uncertainty about the duration of the inflation jump.
Johansen says the recent stock market turmoil is an expected event.
– The stock market rose seven months in a row from February to August. It is quite unusual. It’s just a sign that, at some point, you need a break.
– You fear high energy prices.
After the Main Index started the day with a slight drop, the drop increased throughout the day.
Nordea’s chief strategist Erik Bruce says he thinks it’s the same things that plague the markets now as they have been in recent days.
In Frankfurt, the Dax index was down 1.3 percent, the London Stock Exchange was down 0.9 percent and the Paris Stock Exchange was down 1.2 percent. In Asia, the Tokyo Stock Exchange is down just over 1 percent.
“It is feared that high energy prices will lead to high inflation, so that people’s purchasing power will weaken and eventually affect growth,” says Bruce.
Gas prices continue to rise, affecting Yara, among others, which fell 3.5 percent.
Also, there are still unrest in China, and now several real estate companies have struggled, says Bruce. Chinese giant Evergrande has struggled to pay off its massive debt, which has contributed to the turmoil in the markets of late.
– Then there is this unresolved issue of the debt ceiling in the United States. They must increase the debt ceiling to avoid default. We are approaching the deadline that has been set for mid-October, says Bruce.
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Odin’s manager, Vigdis Almestad, points out that the stock market is falling all over the place.
– The fear of inflation with the belief that central banks will adjust sooner, the general uncertainty related to the effects of component deficiencies, a large volume of issuance in a market that is not cheap in the first place, are explanations from the market crash now, says Almestad.
Green stock is increasing dramatically
Ahead of the stock market opening, trivia company Kahoot provided an earnings update for the third quarter, Norwegian released new traffic figures, and the Stolt-Nielsen shipping company released a quarterly report.
Among heavyweights, Equinor was down 3.7 percent, Aker BP was down 1.7 percent, Hydro closed 4.5 percent down, and DNB went against the tide with a 0.2 gain. percent.
At the same time, the recycling company Pryme emerged as the winner, with an increase of 73.5 percent. During the morning, the company announced a cooperation agreement with Shell. However, the stock has fallen dramatically in the past and is still down about 30 percent in the past three months, according to figures from Infront.
Atlantic Sapphire rebounded and was up 20.7 percent. The company reported after Børsen closed a harvest volume of around 700 tonnes in the third quarter on Tuesday. Harvest volume was in line with Arctic Securities estimate, while realized price was lower than expected. The slaughter volume was somewhat above Pareto Securities’ expectation of 500 tonnes, and had also included a higher realized price, related to oxygen issues in the quarter.
Both brokerages operate with a retention recommendation on the shares. Arctic writes, among other things, that there is operational risk and financial uncertainty in the company. The key factors to monitor in the future will be biological development and KPIs. Atlantic Sapphire has fallen dramatically and is still down 63 percent so far this year, according to figures from Infront.
Milestone for Kahoot
The Kahoot update showed that, for the first time, the company had more than one million paying users in the last quarter, up from 933,000 customers in the previous quarter.
At the same time, billed revenue reached $ 22 million (excluding the Clever acquisition), an annual growth of 90 percent.
Kahoot shares ended up rising 1.1 percent.
The figures are in line with the expectations that Kahoot has presented beforehand. The full quarterly report is scheduled for November 4.
DNB Markets analyst Frank Maaø follows Kahoot’s stock.
– We consider this to be a positive update after some uncertainty, analyst Maaø tells E24.
– Invoiced revenue was slightly above what we expected, while the number of customers is roughly in line with our expectations, says Maaø.
Maaø notes that Kahoot has delivered a weaker couple of quarters and that there has been some uncertainty after slightly weaker organic growth in the first and second quarters.
Kahoot has 1 million paying users
Continued traffic growth for Norwegian
The same morning, it was learned that Norwegian carried 977,719 passengers in September, 206 percent more than the previous year.
On average, Norwegian had 46 aircraft in operation during the month (up from 38 in August), and the company reports that demand has increased in line with easing travel restrictions.
Norwegian reopened bases in Bergen, Stavanger and Trondheim during the month and reports that customers are now booking flights later, for both winter and next summer.
Norwegian shares fell 1 percent.
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Stolt-Nielsen Numbers Drop
Otherwise you have the Stolt-Nielsen shipping company reported about an after-tax profit of $ 33.5 million in the third quarter of the year, compared to $ 29.2 million in the same period last year.
Operating income was $ 580.9 million in the quarter, compared to $ 474 million in the third quarter of 2020, apparently.
The company writes that they view the overall market outlook for all segments in a positive light and expect a strong market for Stolt Tank Containers in the coming quarters.
Stolt-Nielsen shares rose 4.7 percent.
Gas prices in Europe and Britain are rising above 25 percent