The Stockholm stock exchange is starting the second half of the year on an upswing. At 2 pm, the OMXS index is up 0.6 percent.
The upswing comes after an unexpectedly low German inflation figure and as the market is repositioning itself after the first round of the French parliamentary election over the weekend.
Among the most traded stocks in the OMXS30 index, interest-rate sensitive stocks such as the real estate company SBB, up 7.4 percent, and the cloud service company Sinch, up 3.5 percent, are rising.
The major banks are also performing strongly, with a 1.9 percent increase for Nordea.
A Sigh of Relief
Intrum's share is up 2.8 percent after the financially strained debt collection company announced that it has raised SEK 7.2 billion in net liquidity from the sale of parts of its investment portfolio.
Investors across Europe are breathing a sigh of relief that the far-right party National Rally (RN) in France does not appear to be gaining a majority in the new parliamentary election. The Paris stock exchange's CAC40 index opened up nearly 3 percent, but the increase had slowed to 1.5 percent by 2 pm.
In the currency market, the depressed euro is rising against the dollar, while the gap between French and German bond yields is narrowing.
An unexpectedly low German inflation rate in June, according to preliminary figures, is contributing to the positive sentiment.
Government Financial Problems
Ahead of the first round of the French parliamentary election on Sunday, the euro had fallen and French yields had risen to crisis levels due to market concerns about worsening government financial problems for the country, which already struggles to manage its large budget deficits and may face a turbulent political situation with a more populist government after the election.
The second and decisive round of the French parliamentary election will be held on Sunday, July 7.
The OMXS index has risen 8.6 percent since the beginning of the year with Monday's upswing.
