A sudden selloff in European stock markets just before 10 a.m. CET on Monday was fueled by a "flash crash" in the Nordic region, with traders and fund managers pointing toward a potential portfolio trade error.
The OMX Stockholm 30 Index slumped as much as 8 percent in just five minutes before recovering most of the losses shortly after. The index was trading 1.1 percent lower as of 1 p.m. CET, roughly in line with a dip in broader markets.
"It's most certainly a 'Nordic flash crash'," said Joakim Bornold, savings economist at Soderberg & Partners, adding that equity markets can be very sensitive to erroneous trades despite safeguards.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
