On Monday morning, the euro became 2 öre cheaper for the Swedes. But that’s where the good news ends after the EU elections from an economic point of view.
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Euro weaker
The euro weakened against the US dollar and stock markets across Europe tumbled after the far-right rallied in France.
France immediately entered a crisis of government and president Macron called new elections on election night, after dissolving the National Assembly – the French equivalent of Sweden’s Riksdag.
French banks crashed on the stock market
French banks fell the most on the morning after election night. But the Swedish stock market also fell. Immediately, the stock market value on the Stockholm Stock Exchange plummeted by 0.55 percent on Monday morning, and the slide has worsened on Monday since then.
At the time of writing, Stockholm’s broad index has fallen by 1.14 percent until lunchtime on Monday morning.
Swedish pensions in danger
A group of those who have to pay the price for the stock market crash are all the millions of Swedish pension savers who saw the last month’s rise erased in one morning.
The Stockholm Stock Exchange was hit almost twice as hard as the Stoxx 600 common index of European stock exchanges.
News24 has already reported that the broad Stoxx 600 index was down 0.39 percent at 10 a.m. During the day, the index traded within the range of -0.86 percent as the lowest and -0.23 percent as the highest. The FTSE 100 index fell 0.22 percent.
US stocks not unscathed
US stocks also appear to be falling. At the time of writing, they are still closed for the weekend due to the time difference between the continents, but the US S&P 500 futures, i.e. expected trade once Wall Street opens on Monday morning, was down 0.13 percent.
This is how your pension money is affected by the landslide
In other words, those who save for pensions in European shares and funds get a smaller slap in the face than those who only save within Sweden’s borders. And you get away even easier if you have the money in US shares instead.
However, there are never any guarantees that equity investments will rise in the long term – economic conditions can change quickly and the best protection for the savings is to save in a mix of different industries, countries and companies, according to almost all private economists.
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