* The benchmark index on the Oslo Stock Exchange ended down a 2.4 percent to 626.66 points Monday. fall in share prices in Shanghai gets the lion’s share of the blame. Among the most traded stocks on the benchmark index on the Oslo Stock Exchange was the only red numbers. Yara (-4.4), Seadrill (-4.9) and Norwegian (-4.2) were among the big losers, while most traded Statoil fell 2.9 percent Monday. Telenor and Norwegian Hydro fell 1.2 and 2.2 percent, type NTB.
Fears of a severe downturn in the world’s second largest economy makes investors selling out of Chinese stocks. Three weeks ago, the government promised to support the market while it was introduced stricter rules for exchange trading. Large investors did not sell, trade was halted in 1400 shares and it was forbidden to sell shares they do not have, so-called “shorting”.
Moreover went state heavily into the market with intervention purchases, to prevent panic.
When the stock price rose sharply. But Monday railed courses again. According to news agency Reuters is the fear that the Chinese government will continue to stimulate the economy to keep prices up. Shanghai Stock Exchange Composite Index fell 8.48 percent. It’s the biggest drop since the summer of 2007, writes Bloomberg.
The doubt about whether the government can or will support the market further, coincides with several other danger signs. Several large enterprises deliver disappointing interim results, showing that the pace has dropped in the economy. Friday came reports that Chinese managers are more pessimistic than previously. It contributed to Monday’s fall.
The Chinese pulled the European stock exchanges down, but not with an equally deep fall. Monday afternoon, the Oslo Stock Exchange and the German DAX index down over 1.5 percent.
As the speed stops in China, decreasing interest in commodities. Thus sank the price of North Sea oil by about 1.3 percent, to $ 53.7 a barrel.
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