Hoss or bear? Warsaw beats BigTech

Federal Reserve last week it raised interest rates once again. A hike by 75 bp, hawkish Fed message and strong NFP report contributed to a clear rotation in the markets. US indices continue to decline while the valuations of European stock indices are rising.

WIG20 recovers

A surprisingly strong rebound is recorded by the Polish WIG20, which, in contrast to the technological Nasdaq-100, gained almost 1,9% last week. Looking at the macroeconomic data, it becomes clear that the ongoing slowdown will be deeper than 2018. At the same time, it is not dynamic enough to change the attitude of central banks (in particular the Fed), which seek to destroy demand in the name of fighting higher inflation. A certain market anomaly is the persistently low level of the volatility index - the VIX is declining, as is the S & P500. Such a situation may mean that investors are already largely hedged against declines, and therefore the occurrence of a sudden market slump (which often heralds the end of a bear market) is unlikely. This thesis may be confirmed by the fact that the US investor sentiment index has returned to a neutral level.

We invite you to a webinar with the Chief Economist XTB Przemysław Kwiecień, PhD, in which he will focus on the key topic of this week - Warsaw beats BigTech.

In today's video:

• Fed pivot… more hawkish
• Upward European indices - what next?
• Cold forecast for the US

WATCH ON-LINE

In addition, due to the very dynamic situation in the world, additional ones will be made available raports Video on the impact of war, pandemic and economic crisis on the global economy.

About the host

Dr Przemysław Kwiecień - Chief economist X-Trade Brokers. Doctor of Economics at the University of Warsaw, graduate of the University of Warsaw and London Metropolitan University (MSc). Holder of the prestigious CFA certificate. He has been working for XTB since 2007, previously he gained experience as an advisor to the Minister of Finance, Mirosław Gronicki, and an economist at Bank Millennium. At XTB, he manages the Analysis Department.

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