Idyll on stock exchanges before important events

The financial markets seem to be in excellent mood supported by ... not the best data from the United States, indicating a possible capitulation Fed in the cycle of wage increases, as well as hopes that the opening of the Chinese economy and the local stimulus will boost global economic growth. Sentiment may also be supported by a further decline in gas prices and tariffs for enterprises, which may reduce the risk of a deeper recession and a stronger impact on the labor market.

Idyll on the stock exchanges

Positive sentiment from the American and Asian markets is also visible on the Warsaw Stock Exchange. In particular, smaller companies seem to be doing well and the sWIG80 index is the one that comes out ahead in monthly rate of return. The wide WIG and the index of the largest companies listed on Książęca, WIG20, can boast of increases of just over 8%. on a monthly basis. mWIG40, since the last week of December, has gained about 7 percent, while the index of smaller companies, sWIG80, has soared by almost 10 percent. It is impossible not to pay attention to companies such as PlayWay or PCC Rokita. They seem to be the driving forces behind this index due to their weights. PCR shares cost about PLN 70 in October, and PLN 120 at the end of January. In turn, the share price of the game producer was approximately PLN 240 at the same time, and now it is over PLN 400. Although the sentiment towards the Polish stock exchange may not be sensational in its entirety, investors seem to notice individual companies, focusing on them and then increasing the price of their shares.

Nevertheless, in the near future, the cards may be dealt by the Americans. It is overseas that the quarterly results season is underway, and investors are waiting for the giants of the IT industry. Microsoft's upcoming results or Apple Lossless Audio CODEC (ALAC), may affect the further behavior of the main indices. We are also getting closer to the US Federal Reserve's February interest rate decision and decision EBC. While in the US, investors downplay the statements of Fed representatives and do not believe in keeping interest rates above 5%. in 2023, the cycle may keep pace in the euro area. According to recent comments from ECB representatives, the central bank is ready to raise interest rates by 50 bp. in February and March, as well as to the continuation of the monetary policy tightening cycle in the following months. Such an attitude may contradict the recently observed strong rebound in stock markets in Europe.

WIG 20 is getting closer to 2000 points

In Poland, in turn, what may worry investors are expectations NBP talking about negative GDP and all the growing inflationary pressure in the country. Yesterday, the turnover on the broad market amounted to PLN 1,15 billion. WIG gained 1,38% and WIG20 added 1,63%. The WIG20 contract increased by 1,61%, reaching 1951 points. Medium and small companies have entered the picture of the market. mWIG40 increased by 0,78% and sWIG80 gained 0,93%.

Chart Poland 20 (CFD on WIG20), D1. Source: Next Generation CMC Markets platform.