WIG20 close of this year’s lows. Tensions – Money.pl

WIG20 close of this year's lows. Tensions – Money.pl

2014-12-15 22:10

a keen observer of the financial market and constant seeker of alternative forms of investment. Passionate exchange for which the numbers and graphs are the most versatile and rich language in finance.

Author: Damian Słomski

The beginning of the week fueled scared investors with WSE . You can see a big weakness in demand in the domestic market, and also increase the knee is not conducive to deterioration in sentiment on all major stock markets around the world. Hoping for a slowdown in decline gives this second part of the session on Wall Street, which was much calmer. The focus will be on Tuesday, mainly publication of preliminary PMI readings largest economies in the world.

The last time WIG20 falls on such a large scale have seen less than four months ago, and should specify, that substantially all of the 40-point downward movement took place in just two hours last Monday’s session. Lack of demand when a line break 2350 points, which was the level of support over the past months.

Now, the next point to reverse the balance of power in the market is around 2300 points, or lows of August. But not only. Buyer repelling attacks selling shares at this level twice in the first half of the year.

The space for free exchange slips down still and it is possible that on Tuesday attempted break through this barrier we observe. This scenario favors large nervousness on the financial market in Russia, where both The country’s currency and stock market declines recorded on Monday, the order of 8-10 percent.

Nervousness causes a depreciating at an alarming rate and oil. On Monday the price of Brent began to lose its value clearly about 16:00, which is about the time when investors turned to a stock exchange. After the end of trading in stocks in Europe restatement deepened still raw.

The beginning of Tuesday’s session, however, should not be that bad. The second part of trading on Wall Street brought a calming mood, and even a slight reflection can be seen in relation to session lows set immediately after the final bell on the WSE.

You can also tune positive recent publications preliminary PMI readings. While analysts’ forecasts prove themselves, who in most cases the estimated improvement month-to-month. With regard to the German industry may even be that the rate will revert back above the 50 points that separates growth from the recession in the sector.

While waiting for the first publications of European PMI-s, which are scheduled for one hour 9: 00, it is worth looking in the direction of China. There’s probably a similar rate decrease credited with exactly 50 points in November. If it is the result worse than the 49.8 points, may be nervous.

It is also aware of the publication of the index of Germany’s ZEW institute. Most likely, the second month in a row he indicates improvement in sentiment among analysts and institutional investors. We are also waiting for the data portion of the domestic market. This time, the time for information on employment and average wages in the corporate sector. GUS results give exactly at 14:00.