WEEKLY UPDATE – Stocks in Sweden rose to new high, but analysts fear that markets may be overheated.

This week Swedish stocks reached its highest point since the turn of the year after upbeat macroeconomic indicators from the US, China and Germany, boosting shares in industrial companies sensitive to market fluctuations.

Stocks rose Friday as figures showed that sales at U.S. retailers unexpectedly climbed last month, signaling consumers will contribute more to economic growth.

The OMX Stockholm 30 index was up 1.14 percent at Friday 3pm. Compared to last week the index was up 3.65 percent.

Still, more and more investors fear an approaching dip in the market, according to a bond traders poll by Handelsbanken, mainly on the back of the overheated Chinese economy. More than one in four investors now forecast a W-shaped recovery.

Swedbank said in its quarterly Energy & Commodities report Friday that “Growing uncertainty about the strength of the global economy and the effects of China’s austerity package have led to volatile commodity prices”.

The positive trend with raised macroeconomic prognosis has reached a "stand still", Martin Guri, equity strategist at Nordea, wrote in a update, but added that Friday's positive US retail figures will boost stocks in the short run. 

Volvo rose Friday after JP Morgan said the truck maker is likely to gain from increased demand in Europe, Japan, the US and emerging markets and that restructuring is starting to pay off.

Scandinavian airline SAS rallied more than 9 percent after saying it had reached a deal on cabin-crew cost cuts, saving 500 million kronor ($71 million) from annual costs. The deal was also crucial for the ongoing rights issue.

“Labor disputes are becoming an almost every-day occurrence for airlines,” Jacob Pedersen, an analyst at Sydbank, told Bloomberg, adding that SAS’s deal is key to its future.

Elekta, the world’s second-largest maker of radiation-surgery equipment, gained almost 4 percent Thursday after new orders were better than expected in its fourth-quarter report.

Sandvik, the world's largest maker of metal-cutting tools, rose the same day after raised recommendations by several banks. Nordea wrote that increased prices of metal may boost mining companies' willingness to investment.

Lundin Mining rose more than 10 percent Wednesday after its partner Freeport-Mcmoran may be near a deal with Kongo Democratic Republic.

Clas Ohlson, the largest hardware chain in Scandinavia, plunged 7 percent Wednesday after posting lower-than-expected fourth-quarter earnings and slow February sale.

The race to build new wind power stations intensified this week as both O2 Vind and Arise Windpower eye massive capital hike through stock exchange listing.

“We face a large-scale development with 300 large wind power stations and we need a lot of capital in excess of loans and self-generated cash flow”, said the company's Chairman Pehr G Gyllenhammar.

Since the turn of the year the OMX Stockholm 30 index is up 7.20 percent.

This article has been published at The Swedish Wire and Nasdaq OMX Nordic.