Carlsquare Equity Research: Swedish consumer sector snapshot

Read the full report here:

• Entering 2024, the initial expectation was for the Federal Reserve to implement a total of four rate cuts. However, this is no longer the case. The market now anticipates that the Fed will announce its first rate cut in September, with a probability of 54.8%. A second cut is expected in January 2025, with a probability of 58.6%.
• On the other hand, the Swedish Riksbanken announced its first rate cut in eight years on May 8, 2024, reducing the rate from 4.0% to 3.75%, positioning Riksbanken ahead of the curve. The European Central Bank (ECB) is expected to start cutting rates this week.
• As illustrated in the upper right chart, STIBOR and EURIBOR are trending downwards, while LIBOR USD is trending slightly upwards. Lower interest rates on loans leave households with more disposable income for consumption. Since the Riksbank was the first to cut rates, STIBOR is currently the lowest among the three interbank rates.
• Although the macro developments may not progress as quickly as initially anticipated, the current macroeconomic data is favourable for consumer stocks.

Read the full report on the link above for more information incl. interesting cases.

Disclaimer

Carlsquare AB, www.carlsquare.se, hereinafter referred to as Carlsquare, is engaged in corporate finance and equity research, publishing information on companies and including analyses. The information has been compiled from sources that Carlsquare deems reliable. However, Carlsquare cannot guarantee the accuracy of the information. Nothing written in the analysis should be considered a recommendation or solicitation to invest in any financial instrument, option, or the like. Opinions and conclusions expressed in the analysis are intended solely for the recipient. The content may not be copied, reproduced, or distributed to any other person without the written consent of Carlsquare. Carlsquare shall not be liable for either direct or indirect damages caused by decisions made on the basis of information contained in this report. Investments in financial instruments offer the potential for appreciation and gains. All such investments are also subject to risks. The risks vary between different types of financial instruments and combinations thereof. Past performance should not be taken as an indication of future returns. The analysis is not directed at U.S. Persons (as that term is defined in Regulation S under the United States Securities Act and interpreted in the United States Investment Companies Act of 1940), nor may it be disseminated to such persons. The analysis is not directed at natural or legal persons where the distribution of the analysis to such persons would involve or entail a risk of violation of Swedish or foreign laws or regulations. The featured analyses are so-called Assignment Analysis for which the analysed company has signed an agreement with Carlsquare for analysis coverage. The analyses are published on an ongoing basis during the contract period and for the usually fixed fee. Carlsquare may or may not have a financial interest with respect to the subject matter of this analysis. Carlsquare values the assurance of objectivity and independence and has established procedures for managing conflicts of interest for this purpose.