Three areas of concern that rub at the economy

Why is the stock market worried?

The Stockholm Stock Exchange has fallen by just over three percent this week. At the end of the week, the technology-heavy Nasdaq stock exchange in the US was also under pressure. On Thursday, it retreated by 2.6 percent – ​​the worst stock market day since June. On Friday, the decline continued but at a slower pace.

Right now there are two explanations for the turbulence. One is short-term. It is about the companies reporting for the third quarter, which can cause sudden changes in the rates both up and down.

This was not least evident on Friday, when the car manufacturer Volvo Cars came up with gloomy numbers and austerity packages, which lowered the already hard-pressed share price by more than 24 percent.

The other factor affecting the stock market is concern about AI ventures. Massive investments are now being made in companies, and the question investors are asking is, will it pay off? On the American Nasdaq stock exchange are many companies that have invested heavily in technology.

What are the consequences of the higher oil price?

The price of oil has taken off. On Friday, a barrel of North Sea oil (Brent) for direct delivery cost over 117 dollars. It is on par with what was seen at the beginning of the war between the US and Iran.

It is attacks against ships in the Strait of Hormuz and against Saudi Arabia that have pushed the price up again.

The high prices increase the risk of higher inflation. The more expensive oil spills over to other prices where oil and transport are needed. In recent weeks, figures have come in from several countries that show that the rate of price increases is increasing more than expected.

Next week, the US central bank, the Federal Reserve, will release its interest rate statement. The week after, it's time for the Swedish Riksbank. Both need to factor the higher oil price into their decisions.

Why should we care about French interest?

Rising market interest rates have been a global headache for several months. In the past, the focus has been on the United States. Now the American market interest rates have backed off somewhat. Instead, eyes are directed towards France, where interest rates have climbed upwards. Budget problems and the riots this week have increased distrust of French public finances.

A key figure that is now under scrutiny is the difference between French and German interest rates. This week, the difference was the highest since the euro crisis in 2011. It is also what raises concerns that France's problems will cause another euro crisis.