– It has gone straight up for a month now, and many will probably now take a profit. The market is excited and nervous ahead of important figures later this week, says Bjørn Roger Wilhelmsen, chief economist at Nordkinn Asset Management.
Chief economist Bjørn Roger Wilhelmsen at Nordkinn Asset Management. (Photo: Gunnar Blöndal)
The markets are awaiting important international macro figures later this week. On Thursday, there will be both inflation figures for the eurozone and PCE figures from the US, and on Friday new figures for industrial production in the US.
The main index on the Oslo Stock Exchange fell 0.3 on Monday, after a strong finish last week. Early on Tuesday afternoon, Børsen was down almost one percent, to around 1,300 points. The main index ended the day with a fall of 0.87 percent.
On Tuesday, there were few new figures for investors to look for help in, so small effects on the stock exchanges were initially expected. But Wilhelmsen believes that investors are taking note of the little that has come out of figures in recent days, and that these confirm for many that we are now in a negative trend after a very strong third quarter, especially in the USA.
– The tendency is for weaker economic growth in the fourth quarter, after the third quarter surprised positively, says Wilhelmsen.
Until this week, November was hot on Wall Street. The broad S&P 500 index smelled of the top listing from this summer, and as of Tuesday afternoon the index was up 8.5 percent so far in November after a rather flat opening.
On Oslo Børs, November has been significantly quieter, up one and a half percent.
The Nordic index OMXN40, which measures leading Nordic shares, is up well over five percent in November, while the DAX index in Frankfurt is up seven to eight percent and the broad European Euronext 100 index has risen almost five percent.
Wilhelmsen also points out that international interest rates have fallen in recent days, and that a strong bond market means that more people are moving their money from shares to fixed-income securities. This usually results in a fall on the stock exchanges.
Good luck from Seadrill
The rig company Seadrill once again delivered very strong results, which were presented on Monday evening. Expectations were beaten and the company is increasing buybacks and revising estimates. The Seadrill share rose over four percent on Tuesday.
Seadrill shares have risen more than 40 percent so far this year in line with increasingly favorable quarterly results, driven by a rig market that has recovered significantly from the bottom.
Avance Gas also delivered results in the early hours of Tuesday, and more than doubled operating profit. But investors are not satisfied and sent the share price down 11 percent.
Northern Drilling was Monday’s stock market winner, and on Tuesday morning the company repeated the feat with an increase of over 90 per cent. But here we are talking “Russian percentages” since the share is down more than 90 per cent in the last three months. There has been no official news from the John Fredriksen-controlled rig company this week.
The oil price is rising and was at almost 81 dollars a barrel for North Sea oil on Tuesday, up almost a dollar in the last 24 hours.(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using links, which lead directly to our pages. Copying or other forms of use of all or part of the content may only take place with written permission or as permitted by law. For further terms see here.
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2023-11-28 15:45:00
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