The coronaraset on the Stockholm Stock Exchange continues

The financial market is shaken by travel bans, closed boundaries and cross-stops for consumption and production in many places as a result of the corona virus.

Interest rate cuts and incentives from leading central banks and a historic support package from the Swedish government of SEK 300 billion helped little to stop the turmoil that characterized the stock exchange trade.

The Stockholm Stock Exchange OMXS index dropped 17 percent last week and the decline continued at the beginning of this week with a new race of almost 5 percent. The Stockholm Stock Exchange has thus lost about a third of its value since the historic peak on February 19 this year.

- It is undeniably an extreme situation we have. That the stock market is going down even though the US stock market was very strong last Friday and new powerful Fed support measures point to the panic prevailing in the market today, says Esbjörn Lundevall, equity strategist at SEB.

During the day, the case seemed to get even worse, but late in the afternoon it eased somewhat.

Monday's price race follows industrial statistics from China, which showed that production in January-February this year fell by 13.5 percent.

The United States, the world's largest economy, is also taking a hit. An index of manufacturing industry activity in the state of New York has slumped to the lowest level since 2009, according to the US Federal Reserve Federal Reserve's regional New York office.

The Vix index, a so-called fear index that measures volatility in the market, has been at levels above 70 last week, which has not happened since the days of the Lehman Brothers collapse in autumn 2008.

International Monetary Fund manager Kristalina Georgieva, with a $ 1,000 billion aid fund at his disposal, urges the world's governments to step up cooperation significantly more than hitherto has been the case to curb the global downturn and prevent far-reaching damage to the world economy and to support vulnerable emerging economies.

But there are, after all, bright spots that we must not forget in the midst of all panic, says Lundevall.

- In countries such as China and South Korea that were hit early and have tackled the situation in a professional way, you see a pretty clear positive trend. There it goes in the right direction with the number of newly infected cases and people who are allowed to go home from the hospitals, he says and continues:

- To this we have received these massive incentives, although it is obvious that the market today does not appreciate them. They will help the economy on their feet when the pandemic is eventually over.

Leading European stock exchanges also fell deep and wide. The London Stock Exchange's FTSE100 index fell 4.7 percent, the DAX index in Frankfurt fell 5.3 percent and the CAC40 index in Paris fell 5.8 percent.

Among the large companies in Stockholm, the OMXS30 index, medical technology company Getinge stood out with an increase of just over 8 percent. Mining company Boliden is up almost 3 percent, and Atlas Copco and Assa Abloy also ended the day on a plus.

The Electrolux share plunged 9.7 percent since the company warned of significant risk of major financial impact from the corona virus during the first half of 2020.

The H&M share fell 10.7 percent following a report on sales during the quarter that ended on February 29, showing strong declines in China. The report shows that the chain closed stores in a dozen European countries.

This weekend, the airline SAS announced that it would pause most of its operations and lay off 10,000 employees. The stock plunged 7.1 percent.

The biggest race among the OMXS30 company took place at car safety giant Autoliv, which fell by 10.7 percent.