C25 drops to -0.4%

The Danish elite index, C25, closed at minus 0.4 percent on Monday – the seventh day in a row that the C25 closes in minus. According to Jacob Pedersen, Head of Equity Analysis at Sydbank, this is a rare occurrence. “We have to go all the way back to corona to find a time when nervousness and the negative mood have been just as prevalent in relation to closing levels. The shares can fall a lot or a little, but the bottom line is that we have had seven days in a row where the market has fallen,” says Jacob Pedersen. He explains that the persistent decline is due to nervousness in the market, which is caused by two things in particular: the conflict in the Middle East – fuelled by Hamas’s attack on Israel on October 7 – and rising interest rates. “You don’t have to read a lot of media to catch that the situation in the Middle East can have very big consequences. This could have a negative effect on the world economy, and it is an area that is important for a stable oil price, which has an impact on many parts of the economy. And investors are nervous that interest rates will keep rising. We have also seen in the past that really hurts Danish equities,” he said. /ritzau/