August was characterized by slightly higher volatility in the global stock markets. The U.S. stock market, with the S&P 500, rose by just over 2%, the Nasdaq Composite by 0.7%, while the Swedish OMXS30 marginally declined by 0.5%. The market shifted its focus from earlier inflation fears to recession concerns following U.S. macroeconomic data. The trigger for the increased volatility came when the Bank of Japan decided to raise its key interest rate, which strengthened the Japanese yen. After a shaky start, the MSCI World recovered its initial drop of around 7% and ended August with a gain of just under 2%.
The Swedish Riksbank lowered its key interest rate during the month to 3.50%, fully in line with market expectations. The Riksbank emphasized that the rate-cutting cycle is in full swing and that there will likely be three cuts instead of two at the remaining meetings, as inflation has now clearly approached the target. The outlook for Sweden also appears brighter, with steadily improving consumer confidence and GDP growth expected to be one percentage point higher than the rest of the Eurozone in both 2025 and 2026.
Much of the global focus during the month was on Nvidia’s quarterly report, which, despite exceeding expectations, still saw a slight decline after the report. In August, significant attention was also directed towards the FED. After Powell’s speech at Jackson Hole, it seems likely that the FED will start lowering its key interest rate at the next meeting on September 18.
Among our Swedish and Nordic holdings, the pharmaceutical company Sobi had a very strong month, rising by just over 14%. Early in the month, positive phase 3 results were reported for the treatment of two rare kidney diseases, along with information on significant sales potential both within and outside the U.S. The jewelry company Pandora also performed well, with its stock rising by over 9%. Stable sales figures for the second quarter, a record-high gross margin, and an upgraded forecast reflect an agile company that can navigate rising gold and silver prices while maintaining profitability.
Among the global holdings, strong performance was primarily noted in the American cybersecurity companies Fortinet and Palo Alto, which rose by just over 32% and nearly 12%, respectively. Both reported quarterly figures during the month with profit levels well above market expectations, along with upgraded forecasts where the recovery in demand is becoming clearer. Continued signs of strength were also seen in the Japanese sports company Asics‘ quarterly report in August. All segments showed strong growth combined with margin expansion and increased market share, driving the stock up by about 16% for the month.
