Stockholm Stock Exchange Shows Resilience Amid Trade Tensions

The recent performance of Swedish companies on the stock market has exceeded expectations, despite ongoing trade tensions and tariff issues. Analysts have noted that the order intake for many companies remains robust, which is a positive sign amidst the uncertainty caused by the ongoing trade war. Since the start of quarterly reporting on April 14, the Stockholm Stock Exchange has witnessed a nearly 4% increase.

However, the future remains unclear as the market is awaiting the outcomes of trade negotiations following a temporary 90-day tariff pause. Experts warn that the market may continue to experience volatility, with potential rallies followed by sharp declines. The global economy is undoubtedly affected by the trade war and geopolitical instability.

The recent upward trend in the market is attributed to signals suggesting that U.S. President Donald Trump may be considering a retreat from some of the most severe tariffs imposed.

Among the Swedish sectors showing resilience this year are telecommunications, small to medium enterprises, industrial firms, banking, and energy, all of which have demonstrated slight gains. Notably, defense manufacturers have performed exceptionally well, with companies like Saab experiencing an impressive 83% increase in stock value. Midlef Group, a provider of communication systems for the defense industry, has seen its stock price double during the same timeframe.

Despite this positive momentum, the OMX Stockholm index has decreased by 3.17% since the beginning of the year. Certain sectors, including consumer goods, retail, and real estate, have faced more significant challenges.

Earlier in the year, there were optimistic projections for an improved economic outlook in 2025; however, these expectations are now tempered by a more cautious perspective. The international market reflects a similar pattern of instability, with the U.S. Dow Jones index reporting a nearly 6% decline.

European stock markets have generally outperformed Stockholm and U.S. markets, with average gains of a few percentage points since the start of the year. The German DAX index has risen by nearly 12% during the same period. In Asia, market performance has been mixed, with Japan's stock market down approximately 10% since January, while the Hong Kong stock exchange has seen a modest increase of 0.8%.

Gold prices have surged to record highs, which is often an indicator of economic uncertainty. On Monday, real estate companies Wallenstam and Wihlborgs are set to release their earnings reports. Additionally, major firms such as SEB, SSAB, AstraZeneca, and Electrolux will report their quarterly results this week, which is likely to influence market sentiment in the near future.