Stockholm - Sweden is soon to present legislation aimed at shoring up confidence in the finance sector, Prime Minister Fredrik Reinfeldt said Monday.

At a joint news conference with Finance Minister Anders Borg, Reinfeldt also welcomed a weekend agreement by Eurozone countries to solve the financial turmoil.

Reinfeldt told reporters that the deal "was very heartening. It is a first important step to secure financial stability in Sweden."

The legislation would likely be presented later this week.

Sweden, a member of the 27-nation European Union, has not introduced the joint European curency, the euro.

Stockholm/Oslo - Markets in the Nordic region opened strongly Monday in the wake of international efforts, including by Eurozone countries, to solve the financial turmoil.

The Stockholm bourse general index OMXS was up over 6 per cent with a strong start for banking shares.

In Copenhagen, the OMX Copenhagen 20 surged 7 per cent while in Helsinki the OMXH25 was up 5 per cent.

In Oslo, banking and insurance group shares pushed the index up over 6.5 per cent, and in early trading the country's main banking group DnB NOR surged some 22 per cent.

Stockholm - Sweden's central bank said Wednesday it was to cut its interest rate by 0.50 percentage points to 4.25 per cent.

The cut was to take effect October 15, the Riksbank said, adding that the move was part of a coordinated measure with five other central banks.

The bank's board of governors noted that "economic growth in Sweden is slowing down and that inflationary pressures are diminishing as an effect of the financial crisis."

The Riksbank said it was to revise its forecast for both inflation and GDP, and noted that "the labour market is also showing clearer signs of weakening."

Stockholm  - On the eve of Thursday's announcement of the Nobel Prize for Literature, punters seemed to favour a winner from other countries than the United States.

At least according to two online betting sites.

The speculation mirrors that of Stockholm daily Dagens Nyheter that in a survey Wednesday concluded that 85 per cent of all literature laureates since 1995 have been Europeans.

Stockholm - Volvo, the Swedish carmaker owned by Ford, is to shed a further 3,400 jobs mainly in its home base, the company said Wednesday, citing weaker sales in Europe and the United States.

The new cuts would affect some 2,000 blue-collar workers and 700 white-collar employees in Sweden, the company, which is owned by US carmaker Ford, said.

Reykjavik/Stockholm  - The shake-up of the Icelandic banking sector continued Wednesday as the Icelandic Financial Supervisory Authority (IFSA) took control of a second bank.

The take over of Glitnir came after the Icelandic government, backed by opposition parties, late Monday adopted an "emergency law" to reorganize its financial system which has been severely battered.

The agency said Glitnir's domestic deposits were "fully guaranteed" and operations were to remain open for business as usual.