October was marked by a volatile stock market, with markets moving slightly downward. The uncertainty was partly due to the U.S. presidential election held in early November, as well as macroeconomic reports published during the month. Positive employment figures from the U.S. provided some support to the market, while inflation data caused concern. At the same time, corporate earnings reports influenced market movements. The S&P 500 fell by about 1%, while the Nasdaq Composite performed slightly better with a decline of 0.52%. The Nordic market showed a weaker trend; the MSCI Nordic index dropped by about 3%, as did Stockholm’s OMXS30. In other regions, the development was more positive, especially in Japan. The Japanese stock market noted an increase of approximately 3%, with companies raising their profit forecasts for the coming years, contributing to increased optimism.
Overall, the earnings season showed that many companies continue to face demand-related challenges. Many companies have focused on cost management throughout the year to maintain stability, with expectations that the situation will gradually improve in 2025. We now leave behind an eventful October and look forward to an exciting November, with the results of the U.S. presidential election and anticipated interest rate cuts from several of the world’s central banks in focus.
Among our Nordic portfolio companies, there was positive development for the Norwegian asset manager Storebrand, which strengthened after its quarterly report showed solid growth in savings and insurance. The Danish logistics company DSV also continued its positive trend, helped by the acquisition of Germany’s Schenker. Additionally, we saw a recovery in Autoliv after a well-received quarterly report. Although the stock had previously been pressured by negative signals from the automotive industry and profit warnings from customers, the company maintained its guidance for operating margin, which reassured the market. Other companies also demonstrated successes during the month. The education company Pearson and pharmaceutical company Incyte performed strongly and raised their future outlooks. The travel sector was particularly robust, with good results from both Royal Caribbean Cruises and Booking. Nvidia continued to benefit from investment interest within the AI sector. Meanwhile, several companies encountered challenges. Atlas Copco had a tough month after delivering a report that did not fully meet market expectations. LVMH was affected by weaker demand in the Chinese consumer market, and both ASML and Munters faced difficulties in the form of decreased demand and disappointment over order intake.
General risk information:
There is no guarantee that an investment in the Nordic Equities’ funds will not result in a loss, even at times when financial markets are otherwise performing favorably. Past performance is no guarantee of future return. The value of the capital invested in the Nordic Equities’ funds may increase or decrease and investors in the Nordic Equities’ funds cannot be certain of recovering all their invested capital. The fund’s full and half-year statements are available free of charge on request, please contact us at mail@nordeq.se or at +46 8 545 045 00.
