Inflation is becoming heavier on the Polish stock exchange

At present, we do not have a clear move on the Polish stock exchange that would include the valuation of high inflation. To a large extent, the markets live on reports from the Chinese front. There is no doubt, however, that in the long run such a rapid price growth will sooner or later affect business valuations and, importantly, customer sentiment and consumer potential. Undoubtedly, future readings (on sales and consumption) will not be bad enough for anyone to intervene in interest rates. Nevertheless, we should not expect stable dynamics on a monthly basis.

No exposure to the Chinese market

A big plus for the Polish economy is the lack of significant exposure to the Chinese market. After the statement issued by Apple, most exchanges ended yesterday's trading neutral or slightly negative. A topic triggered by one of the largest global companies has poured a bucket of cold water onto the stock exchanges, which can upset and fragile optimism. The company announced that it is practically convinced that it will not achieve the forecast revenues in the current quarter. This is mainly due to the fact that a large part of Apple's business is concentrated in the Middle Kingdom.

CHNComp chart (CFD on Hang Seng index), interval H1. Source: xNUMX XTB xStation

On the one hand, Polish companies do not have much exposure to the Chinese market, e.g. US companies. Following this lead, you can draw a number of connections of technology companies from the United States with other countries.

Inflation will be higher?

The current impact of inflation on stock market turnover is not even noticeable. In addition, foreign investors may begin to withdraw from their capital investments in our country. The reason may, of course, be the worrying economic situation in Poland. Strong dollar and decline in US bond yields is already a good reason to say that capital from emerging markets is slowly but steadily draining off. GUS data published on Friday they were alarming. Inflation in January reached 4,4%, entering alarming levels. Will the Monetary Policy Council change its attitude in the near future? Will inflation continue to rise? It's highly likely.