Sweden’s industrial production value rose 4.2% year over year in December. This was the same pace as in the previous month.
This unchanged reading points to steady annual growth in industrial output value at the end of the year. The release did not include a detailed breakdown.
Swedish Industrial Output Outlook
The stable 4.2% year-over-year rise in industrial production in December 2025 gives Sweden a solid starting point for the new year. It suggests the economy still has momentum. For us, this lowers the chance that the Riksbank will cut interest rates soon.
Newer data supports the same message. Sweden’s manufacturing PMI rose to 53.5 in January 2026, which signals continued expansion. That strength is supportive for industrial company earnings. We should consider buying call options on the OMXS30 index, as the market may not fully reflect this resilience yet.
This backdrop should also support a stronger Swedish Krona. EUR/SEK has already dropped by more than 1% since the start of the year, and these numbers argue for more downside. We see an opportunity to buy SEK call options versus the Euro, aiming for a move below the 11.20 level seen last autumn.
Inflation in January 2026 came in at 2.1%, slightly above the Riksbank’s target. This keeps pressure on the central bank to stay hawkish. Rate markets now price in more than a 50% chance of another hike by mid-year, a big change from one month ago. We should review forward rate agreements that benefit from higher short-term rates through the second quarter.
Options Volatility Strategy
With a Riksbank policy meeting next week, implied volatility in both the Krona and the OMXS30 has increased. That makes selling out-of-the-money puts on Swedish industrial stocks a potential way to earn premium. The strong economic base may help limit major market declines, which makes this a measured risk.
Create your live VT Markets account and start trading now.
here to set up a live account on VT Markets now
