Stockholm rioting continues for fifth night

Police in Stockholm are to seek reinforcements after youths set cars ablaze and threw stones at police for a fifth night running, officials said.

About 30 cars were set on fire in poorer districts in north-western and south-western parts of the Swedish capital on Thursday night, with rioters causing widespread damage to property, including schools. However, a police spokesman said the overnight violence was less intense than in previous nights.

Despite Sweden's reputation for equality, the rioting has exposed a faultline between a well-off majority and a minority, often young people with immigrant backgrounds, who cannot find work, lack education and feel marginalised.

The violence appears to have been prompted by the death of a 69-year-old man shot by police this month in Husby, now the centre of the rioting. Read more >>

Swedish Manufacturing Orders Plunge

Sweden’s manufacturing unexpectedly shrank in August at the fastest pace since May 2009 as the krona’s appreciation sent export orders plunging amid sagging demand from debt-stricken Europe.

The purchasing managers’ index fell to a seasonally adjusted 45.1 from 50.6 in July, Stockholm-based Swedbank AB (SWEDA), which compiles the gauge, said today. A reading below 50 signals a contraction. The index was seen falling to 50.1, according to the average estimate of 10 economists surveyed by Bloomberg.

“Sweden won’t go unscathed through this period of an international slowdown,” said Roger Josefsson, chief economist at Danske Bank A/S in Stockholm. “In contrast to data that’s been published earlier, this is data that’s come in after the still recent strengthening of the krona.”

Sweden’s central bank, which is set to announce its next interest rate decision on Sept. 6, in July kept its key rate unchanged and pushed back tightening plans because of turmoil in Europe. The Nordic country relies on sales abroad for about half of its output and sends 70 percent of its exports to Europe where economies are contracting amid austerity measures. Read more >>