It was nervous on European markets on Tuesday, which was also seen on the WSE. The main index of the Warsaw Stock Exchange following the ratings of domestic blue chips was the weakest in Europe, despite the fact that the dollar offended with weakness and in steam with gold reached a few years of minima. His weakness flowed straight from the USA, where they sewed disturbing changes in the Fed, and the economy provided strong data that the market is analyzed at an angle closest to the decision on the feet.
Tuesday trade on the WSE was subordinated to poor sentiment on European stock exchanges, with DAX drops by 1.6 percent. at the end of trade in Warsaw. Indexes in London, Paris or Amsterdam also fell, except that WIG20 and DAX turned out to be the weakest of this symbolic day, when the presidents of Poland and Germany talked about mutual relations, during the visit of Karol Nawrocki behind the Oder.
Indexes for Wall Street, which just under the historic peaks, were a bit better in the waiting mode for the Wednesday decision of the fed. The S&PC lost 0.2 percent, and Nasdaq 0.5 percent when the session was closed at Książęca.
The day on the macroeconomic section was brought by data on base inflation in Poland, a report from the British labor market (consistent with the expected), data on the production of the industrial euro area with the acceleration of annual dynamics from 0.7 percent. up to 1.8 percent (also better than forecasts). Attention, however, was focused on data from the US, where better than expected data on retail sales (0.6 percent MDM against 0.2 percent forecast) or industrial production (0.1 % MDM in relation to the expected decrease by 0.1 percent).
However, the dollar was losing, although the data from the economy indicate just before the Fed's decision that it has been doing well with the feet kept at an unchanged level since November last year. Reduction of the main interest rate by 25 points of the database. It is already at prices. The chances of a greater cut is currently less than 4 percent. (the day before it was 5 percent) according to the Fed Watch tool.
After data, the EUR/USD exchange rate increased by 0.65 percent Up to 1.1847 and was at most from September 2021. The USD/PLN exchange rate went down even below the level of PLN 3.59 and tried to test the minima from July this year, which are also the lowest levels of the dollar since 2018. However, this did not help the GPW, where WIG20 touched the supply wave covering 19. A greater discount began with the entry into the game of Americans.
At the end of the day, WIG20 fell 0.163 percent, WIG was lower by 1.43 percent. In turn, MWIG40 fell by 1.13 percent, and the SWIG80 was relatively stronger, which gave 0.48 percent. And it stays in the area of record levels. Turnsing on the wide market still fell on Monday and so poor result and was counted on PLN 1.49 billion, of which PLN 1.17 billion concerned companies from WIG20.
In the commentary to the dollar behavior, it is worth adding that the US Court in the US rejected Donald Trump's attempt to remove Lisa Cook from the Council of Fed governors. The administration announced the submission of an appeal. At the same time, the candidacy of Stephen Miran for a new member of the Council was approved.
“On the one hand, Miran himself declares that he will operate” independently “and will take free vacation from the White House during the work on the board. On the other hand, his simultaneously remaining in the structures of administration – although” dormant ” – is an unprecedented situation in the latest history and raises questions about the real autonomy of the decision -making process in monetary policy,” TMS Oanda commented Brokers.
Returning to the WSE, the discount was wide and covered 12 out of 14 industry indexes. Wig-Media (-2m39 percent), WIG-Energia (-2.25 percent) and WIG Banks (-1.90 percent) were at most on the list of the weakest industry indexes. Only medicines (0.32 percent) and games (0.07 percent) gained minimally.
Among the large companies, PGE (-3.31 percent), and Santander (-2.78 percent) stood out with discounts, against which the president of Erste Group said that the attractiveness of the transaction of taking over the control package did not change, despite information about changes in bank taxes. The CCC exchange rate (-2.67 percent), Dino (-2.55 percent), mBank (-2.4 percent) and PZU (-2.35 percent) also managed less well. However, another 10 companies were also overestimated by over 1 percent. Only the values of CD Projekt (0.04 percent) were in the plus.
On Tuesday, companies related to the arms industry grew again. They gained Lubawa (3.89 percent), Zremb (3.18 percent) and protector (6 percent). The bumech course went up by 2.09 percent, which just wants to enter the defensive sector. On the last day of July, Bumech signed a letter of intent with the OTT Technologies company regarding establishing cooperation in the launch of production in Poland of armored cars in Poland.
The second session in a row grew the Altus course (13.82 percent), which may be related to the news of the discontinuation of prosecutor's proceedings against Altus TFI in connection with the GetBack scandal. The prosecutor's office accused the board of Altus that … he sold the EGB Investments SA actions too expensive
Intersport (31.85 percent) became the leader of growth, which said that he had an OTCF contract regarding the Series M shares in exchange for making a cash contribution of no more than PLN 11.8 million.
Let us also mention the exchange rate of the stock exchange itself, at which Betf Bitcoin, the first Polish ETF fund debuted on Tuesday, whose task is to reproduce the rate of return on time -oriented contracts to cryptocurrency at CME. GPW shares fell by 1.33 percent
Michał Kubicki
