Distrust of Trump led to the slump of the year on Oslo Stock Exchange
Less confidence in US President Donald John Trump caused the Oslo Stock Exchange (Oslo Børs) to drop sharply Thursday. By closing time, the main index was down by 2.14 percent. The distrust of Trump is linked to ever growing allegations of his links to Russia.
The decline from 728.3 to 712.6 points is the largest drop percentage wise this year. According to E24, it is also the largest since the so-called brexit vote eleven months ago.
Even at the opening, the main index fell by over 1 per cent. After half an hour of trading it was 1.16 per cent.
The trend continued through the day.
Asia and Europe follow suit
Stock exchanges in both Asia and Europe also declines Thursday, most likely due to the political turmoil surrounding US President Donald Trump.
– The Trump effect is over. The market has now less confidence in the US President, says Thomas Breivik, to Dagens Næringsliv. Breivik is CEO in DNB Markets
After Trump was elected US president in November, US stocks have been sky rocketing, by some referred to as the “Trump effect”. Others point to the fact that US economy was already recovering, and that Trump has been surfing the wave.
Hits industrial shares
But the current lack of confidence in the president will, among other things, affect the industrial shares in the United States in the future. This because this type of stock has been given a boost after the election, Breivik believes.
– This type of shares will go down in Norway and Europe too, he explains.
He refers to the aluminum producer Norsk Hydro as an example. This particular stock fell by a staggering 6.3 per cent on Thursday.
Stabilized in the US
Thursday the decline halted, mostly due to the fact that the US is financially stable, according to the Wall Street Journal.
© NTB Scanpix / Norway Today