Swedish shares hit year-low on US fears
The Stockholm stock market lost more than 2.5 percent Monday, falling to a new low for the year, reflecting global nervousness following a bleak report on the US manufacturing sector.
In Tuesday afternoon trading the OMX Stockholm 30 index was down 1.86 percent. Global equities slid on Tuesday and the dollar firmed against the euro as investors focused on weakness in the world economy and eurozone tensions while awaiting progress over a US debt deal.
"So much for the relief rally that was supposed to occur on the back of the proposed debt deal," said Chris Weston, an analyst at IG Markets trading group.
"The focus has now shifted to the global economy with manufacturing deteriorating across most ... economies."
European equities and the euro were also hit by new worries over the plight of debt-laden eurozone member nations Italy and Spain.
The pair came under fresh pressure on Tuesday as nervous investors sold down their bonds on concerns that their debt problems will only get worse as economic growth slows.
The European single currency sank as low as $1.4158, which was the lowest level since July 21. It later stood at $1.4182 in London deals, down from $1.4248 late in New York on Monday.
The index tumbled 2.53 percent Monday, bringing its loss since the beginning of the year to more than 10 percent.
Among the losers of the day was Sweden's Volvo Group -- which owns Volvo Trucks, Renault Trucks and Mack -- which saw its share price tumble 4.32 percent while competitor Scania plunged 5.21 percent.
Global markets had risen earlier Monday after US President Barack Obama announced an accord with his Republican foes on the US debt ceiling, thereby avoiding a feared default. However, as doubts about the deal grew, investors turned cautious and then sold off heavily when the weak US manufacturing data came in.
Last Updated (Tuesday, 02 August 2011 14:32)