The krona falls to its weakest point ahead of Christmas, while many global stock markets tumble on the back of some very bad Netflix news, among others.
The krone falls to 10.11 kroner against the euro on Friday, from 9.92 kronor on Thursday evening, and is now at its clearly weakest in 2022.
This is bad news for all Norwegians who buy goods abroad or dream of a vacation trip to southern regions.
The reason behind the krone’s decline is a global stock market decline, with both the Oslo Stock Exchange, Germany’s DAX index, American stock exchanges and most others in the red. Omicron fears and poor results from major companies like American Netflix are dragging down CNBC.
Netflix released miserable numbers after the market closed on Thursday, falling 21 percent at Friday’s open after the streaming giant confirmed fewer people were subscribing to the service than before.
Netflix said Thursday, among other things, that it expects to add 2.5 million new subscribers in the first quarter of the year, while expecting to add nearly seven million new subscribers.
Also read: Highest oil price in more than seven years
This is partly due to competitors like Disney Plus steals subscribers, but also that people will likely have less time to sit indoors and watch TV as corona restrictions are gradually lifted. Interestingly, Disney is also down 5 percent as the market fears other streaming giants could be caught up in the same move as Netflix.
On the Oslo Stock Exchange, most large companies ended up in the red. Worst of all is giant Autostore, which fell 12 percent on Friday, while major stock market giant Equinor fell 2 percent.
oil prices down
Overall, the Oslo Stock Exchange lost 1.85 percent, while the DAX lost 2.85 percent. The tech-heavy Nasdaq stock market is also down in the US, particularly weighed down by Netflix.
DNB Markets currency strategist Magne Østnor stresses that the Norwegian krone has indeed held up well lately, particularly helped by a strong oil price, but that several things contributed to Friday’s decline.
– The price of oil has fallen a bit since yesterday and the stock market is a bit confusing, but there isn’t always a perfect connection between these things either, he tells Nettavisen.