A flash crash occurred on the 2nd in the Nordic stock market, which had a wide impact on the European stock market. Traders and fund managers have pointed out potential errors in portfolio trading.
Sweden’s OMX Stockholm 30 index plummeted by up to 8% from the previous weekend in just five minutes from just before 10am Central European Time (CET). Shortly therefollowing, he regained most of the lowering. As of 1:00 pm CET, it was down 1.1% year-on-year, regarding the same as other markets.
“It’s definitely a’Scandinavian flash crash’,” said Joachim Bornold, economist at Sedelberg and Partners. He added that the stock market can be very sensitive to erroneous transactions.
The cause of the plunge in the market is not clear at this stage, but a spokeswoman for the stock exchange Nasdaq Stockholm explained that the investigation revealed that it was not a technical malfunction on the exchange. None of the transactions made will be cancelled.
Source: Bloomberg
The weakness in overall business is likely to have amplified the decline as the UK and Irish markets are closed on bank holidays.
Original title:Five-Minute ‘Flash Crash’ in Nordic Equity Markets Jolts Europe(excerpt)