The Stockholm stock exchange rose across the board following Wednesday's announcement that inflation in the USA was lower than expected in May.
The broad OMXS index rose 1.8 per cent.
Among the most traded shares in the OMXS30 index, interest-rate-sensitive companies such as cloud service provider Sinch and property company SBB rose 4.4 per cent and 3.9 per cent, respectively.
The major banks also performed strongly. Nordea rose 2.9 per cent and SEB gained 2.2 per cent.
The worst performer in the OMXS30 was automotive safety company Autoliv, which fell 1.8 per cent. Also among the losers was game developer Evolution, down 0.8 per cent, after Ekot on Swedish Radio reported that the company's products were found on illegal online casinos in Southeast Asia.
Inflation in the USA in May was unexpectedly low according to most measures released by the country's labour market department. This increases the likelihood of interest rate cuts by the USA's central bank, the Federal Reserve (Fed), which strengthens risk appetite in the global market.
In the market's pricing, the likelihood of an interest rate cut in the USA in September rose to over 70 per cent after the inflation figure, up from almost nothing.
The krona received a boost from the development, reaching its strongest rate since March. One dollar cost 10.30 kronor and one euro 11.18 kronor at the close of trading.
The euro has taken a hit after the weekend's EU election, which has created an uncertain political situation in France.
On Tuesday, the Stockholm stock exchange fell for the second day in a row, down 0.3 per cent. With Wednesday's price rise, the increase since the start of the year is 10.8 per cent.
On the leading European stock exchanges, the trend was positive. Indices in London, Frankfurt, and Paris rose between 0.9 and 1.4 per cent.
