WEEKLY UPDATE - Upbeat macro economic signals brought spirits back to the Stockholm exchange after raised concern over Greece's downgrade.

Stocks rose Friday morning at the Stockholm exchange after German business confidence swelled to the highest in 17 months and an upbeat report from American Oracle indicates that consumers one again are spending money on technology. In the afternoon the OMX Stockholm 30 index turned downwards and closed at -1.10 percent compared to the previous day and almost as much compared to last week.

Swedish bank sector took a hit during the week as Greece's cut credit rating further damped spirits and raised concern that spiraling national debts may hamper the global economic recovery.

“Concern over Greece dampen risk appetite all over the world and made stock prices decline. But the bank sector was hit the most”, Esbjörn Lundevall, Head of Equity Research at SEB Private Banking, told The Swedish Wire.

The dollar shot to its highest level in three months Thursday as the Federal Reserve took on a more optimistic tone regarding the US economy, following that most of its special liquidity facilities will expire by early 2010 and that interest rates will be held at historic lows.

Also the Swedish Riksbank said Wednesday that its key interest rate would be kept on record low at least level until autumn 2010 in a move to support economic recovery. Sweden's National Institute for Economic Research said Friday that higher exports and rising consumption will improve the country's economic situation.

Swedish clothes retailer Kappahl rallied 7 percent Friday after posting better-than-expected earnings.

“It’s a fantastic report and good news for all cloth retailers”, Esbjörn Lundevall said.

Fashion retailer H&M; fell Tuesday after reporting a worse-than-expected drop in sales in November, marking the seventh consecutive monthly decline in sales.

Media group MTG plunged Friday after its finances were hit by 3,361 million kronor of Bulgarian one-off costs.

Drug maker Astra Zeneca rose Wednesday after a committee of the U.S. Food and Drug Administration gave a positive verdict recarding the drug Crestor. Swedbank raised its recommendation for Astra Zeneca flowing the outcome.

Since the turn of the year the OMX Stockholm 30 index is up 43 percent.

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