Blood red on the stock exchange screens

The corona center is not only spreading throughout the world, but so are the worries in the financial markets.

After a temporary break on Wednesday, the stock exchanges reappeared substantially. In Stockholm, the broad OMXS index in the afternoon declined by over five percent. But the rates scrutinized somewhat, closing at -3.7 percent.

Peter Malmqvist, an independent financial analyst, does not want to speak in terms of stock exchange despite the large downturn.

- I wouldn't call this a stock market race, rather a stock market correction.

He points out that the Stockholm Stock Exchange, like many other exchanges in the world, has gone up a lot in the past year.

- This has happened at the same time as the profits have basically wandered sideways. This means that the valuation has been very high, he says.

The decline is a direct consequence of the coronavirus outbreak and is caused by a concern over restrictions in China, says Peter Malmqvist.

- China is the world's factory. Almost all large companies have suppliers or subcontractors in China. Setting boundaries for mobility there is serious.

In addition, the outbreak in Italy has had a further psychological effect, he says.

- It was the drop that made the beaker run over.

Peter Malmqvist expects a continued decline in the coming days.

- I don't think this will end until the stock market goes down another 10 percent, he says.

At the same time, more secure assets, such as gold and government bonds, continued to rise in value.

The major European stock exchanges also went down sharply: the FTSE100 index in London dropped 3.5 percent, the CAC40 index in Paris backed 3.3 percent and the DAX index in Frankfurt fell 3.2 percent.