Week begins with market downturn

There was renewed uncertainty on the Stockholm stock exchange on Monday as international markets continued to fluctuate.

The OMXS index closed down 1.3 percent, mirroring developments at exchanges worldwide.

The banking sector took the day’s biggest hit, with SEB and Swedbank shedding 4.4 and 3.7 percent of their share value respectively.

There is a general feeling among observers that the Federal Reserve will follow last week’s 0.75 point interest rate cut by slashing rates by a further 0.5 points at a meeting scheduled for Wednesday. But analysts are predicting a negative reaction on the markets should the Fed fail to meet expectations.