Stockholm Stock Market Suffers in 2025, Trailblazing European Peers
Stockholm stock market faces significant underperformance in 2025 compared to its European peers.
Key Points
- • Stockholm stock market has risen marginally in 2025, underperforming globally.
- • Stockholm's small market size hinders its competitiveness; other markets have significant gains.
- • Rising Swedish Krona affects export-oriented firms negatively, impacting profit margins.
- • Analysts believe recovery is possible with improved global economic conditions.
As of July 9, 2025, the Stockholm stock market has recorded only slight increases, positioning it as one of the weakest performers among global stock markets this year. According to insights from Maria Landeborn, a senior strategist at Danske Bank, this underperformance is attributed not to the health of Swedish companies but rather the relatively smaller scale of the Stockholm exchange in comparison to major European markets.
Analysts report that while other notable European markets have surged—Frankfurt rising over 22%, Paris increasing by 6%, London by 8%, Oslo by 14%, and Warsaw by a remarkable 33%—the Stockholm market flounders, second only to Copenhagen in disappointing results. The primary reason for Copenhagen's poor performance is the substantial decline of its leading stock, Novo Nordisk.
Landeborn points out that the current economic climate, particularly the global economic conditions, plays a substantial role in the performance of the Stockholm market. The market's prominence in cyclical industries makes it vulnerable to broader economic trends. For instance, as the Swedish Krona strengthens, export-oriented companies find it increasingly hard to compete, leading to tighter profit margins.
Moreover, Jon Arnell, the investment chief at von Euler & Partners, notes that investment capital is being diverted from the U.S. to more favorable European markets, a trend partly attributed to political uncertainties enveloping former President Trump. He further explains that while other European markets are reaping rewards from substantial investments in infrastructure and defense, the valuation of the Swedish stock market has not declined to the same extent as its peers, which may contribute to a period of lagging performance.
Overall, while there is belief among analysts that the Stockholm market may rebound as global economic conditions stabilize, Arnell indicates that investors currently find more compelling opportunities in other continental European markets, given their attractive valuations and ongoing profit growth momentum.
In conclusion, unless there are significant changes in external factors or local economic conditions, Stockholm's stock market may continue to struggle in the short term, maintaining its position as an underperformer relative to its European counterparts.