In the morning, the OMXH General Index on the Helsinki Stock Exchange opened a 0.6 % decline in the morning, but the fall had clearly accelerated in the afternoon.
After half past two, the general index was as high as 3.5 % when China said it would set a 34 % additional duties for imports from the United States.
China’s newcomers struck in particular in bank shares. Nordea The share had slipped 7.5 per cent. Aktia had fallen more than 15 percent, although a significant dividend had been removed from the share today.
In European large banks, the decline was even steeper. For example, Deutsche Bank had fallen by 11 per cent and Unicredit by 12 %.
Nordea Friday’s review estimates that the market yesterday’s reaction to the US president Donald Trump Wednesday night’s customs announcements say that the scope and size of the customs came as a surprise.
“Equity courses, dollar and state -owned interest rates turned to a drastic decline, and expectations of central bank interest rates accelerated as customs are expected to negatively affect the growth prospects of several economies and the entire global economy.”
Danske Bankin The review points out that there are no winners in the trade war, but there is room for negotiations. According to the bank, attention is drawn to the retaliation of other countries. Probably negotiations on the fires will begin.
“Nothing is stoned with Trump. One call can change the situation for a single country. It’s a good thing, but uncertainty has not left.”
Many companies on the Helsinki Stock Exchange will affect the new US import duties.
Inderes The review recalls that under the current US administration, situations may change rapidly, but according to the current plan, customs should enter into force on Wednesday next week.
“The indirect effects of the current trade policy, and in particular the full trade war that may be ahead, are likely to be larger than direct effects for the majority of companies.”
Inderes estimates that, for example, the business of the engineering sector players is basically global, where the US is a significant final market.
“Thus, customs decisions affect domestic listed engineering companies, as we believe that almost all operators have exports to the US. Direct effects are naturally influenced by the company’s turnover and the scope of their own local production.”
However, in principle, the effects are negative, the analysis house emphasizes.
“At the same time, it is good to note that supply chains components are typically global, which will also affect the cost of production of local manufacturing.”
In addition to Aktia, dividends came off today in addition to Aktia: Consti, Orion, Outokumpu, Ostrobothnia Value Investment Cooperative and Wulff companies.
Gorten The target price for the share will decrease to EUR 23.0 for EUR 24.0. The analysis house repeats more recommendation.
Ilkan With Inderes, the share recommendation is reduced to the Additional level and the target price of EUR 3.75 is repeated.
Handelsbanken to lift Elisan The target price of EUR 57.00 from EUR 55.00 and the hold recommendation is repeated.
Barclays to start Finnair with a monitoring of monitoring.
Nordea falls Stora Enso The target price of EUR 3.40 (formerly EUR 13.80) repeats the buying recommendation.
Nordea raises Forest board Recommendation for buying level (formerly), no target price.
Nordea falls UPM:n The target price to EUR 33.00 (formerly EUR 33.50) repeats the buying recommendation.
Barclays raises Sampon The target price of EUR 9.50 (formerly EUR 9.00), repeats the hold recommendation.
HSBC raises Nordea The target price of EUR 11.40 (formerly EUR 11.20), repeats the hold recommendation.
Futures also anticipate a steep opening to the United States. The S&P 500 index is expected to decline by 3.1 % and the NASDAQ 100 is 3.4 %.
Redemption at 6:26 pm: Corrected the number of duties set by China.