WEEKLY UPDATE – Confidence returned to the Stockholm market after Sweden's economy growth rate beat forecast and hopes that Asia will dodge eurozone crisis.

Stocks in Stockholm rose slightly Friday after a bumpy week. The gains extended from the previous two days, following a 2.5 percent dive Tuesday – and returned some confidence to the market. But US stocks retreated in opening trade, dragging Swedish stocks down in the last hours.

Compared to last week the OMX Stockholm 30 index was up 3.29 percent.

The Stockholm market rose in line with global major markets, boosted by hopes that Europe's debt crisis would not spread to Asia.

"Easing concerns about the euro from China's denial that it is reconsidering its euro foreign exchange reserves are helping the bulls rid the bad taste in their mouths from yesterday's late-day slide in the US equity markets," Charles Schwab & Co. analysts said in a client note.

Truck makers Volvo and Scania rose Friday after their main competitor MAN’s chief financial officer told Les Echos the truckmaker will sell 25 percent more vehicles this year.

Lundin Mining, Alliance Oil and Enquest rose as raw material prices continued up and oil prices climbed above 75 dollars on Friday, boosted by signs of higher demand for energy.

Also Sandvik, the world's largest maker of metal-cutting tools, was among the fastest climbers Friday after upgraded recommendations by ABG Sundal Collier. Telecom operators Tele 2 and TeliaSonera rose in Friday trading.

Hennes & Mauritz were up more than 2 percent Thursday after being upgraded to “overweight” by Morgan Stanley.

Smoke-free tobacco maker Swedish Match closed flat on Tuesday, with the index diving 2.5 percent, after saying it would hike prices on snus on the US market by 7 – 10 percent.

Defence firm Saab, maker of the Gripen fighter jet, fell 2 percent Tuesday after it was difficoult to forecast new orders due to unstable market conditions.

Sweden’s economy grew faster than expected during the first quarter, partly on the back of rebounding exports, the statistics office said Friday. Finance Minister Anders Borg said that Sweden now has the strongest growth of all EU countries.

The figures also increased expectations that the Riksbank will hike interest rates in July from record low 0.25 percent – for the first time since the financial crisis.

Figures from online broker Nordnet showed Friday that Swedish private investors in May, for the first time on a year and a half, sold more funds than what they bought.

Since the turn of the year the OMX Stockholm 30 index is up 2.88 percent.

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