Previously, brokers had described the event as a “flash crash” attributable to a wrong trade on a slow holiday trading day.
Sweden’s financial supervisory authority said earlier that it was investigating the crash and was in contact with US trader Nasdaq, which runs Stockholm and other stock markets in the Nordic region. Nasdaq quickly ruled out a bug in its systems.
Other indices also fell, such as those for Denmark, Norway, Germany, Italy and France, but later recovered.
“It was weird in those minutes,” said Martin Munk of Jyske Bank, adding that many concerned customers called asking what was going on.
Munk said shortly after the event that it seemed like a misoperation or technical glitch. “It doesn’t seem like it was triggered by an event in the world, because that news would have reached us by now,” he noted.
Brokerage Nordnet said the sudden move was a “flash crash” that caused a brief panic in the market, while traders in Frankfurt and London said it could have been caused by algorithm-based trading gone haywire or by a large stock trade. “thumb”.
With information from Reuters.