At about 2.5 hours before the announcement of the ECB’s decision on interest rates, European indexes began to glow red. The deterioration in sentiment is related to the fact that the market today can not possibly expect any easing of monetary policy by the central bank of the euro area.
The decision of the European Central Bank will be announced on 13:45, a press conference Mario Draghi is scheduled at 14:30. Bank in March reduced the deposit rate to -0.4 percent and the refinancing rate to the level of 0 percent. About 20 billion euro also expanded asset purchase program.
WIG20 index lost about 0.4 percent and the German DAX, French CAC and the Hungarian BUX fall by about 0.5 percent. At a minimum positive territory halfway through the session held on to the Spanish and Italian stock market.
The British FTSE100 does not differ from the pan-European trend and lost about 0.6 percent. It is also thanks to the weaker than expected data on retail sales in the UK. In March, it increased by 2.7 percent year on year, compared to the projected 4.4 percent.
Among the Polish companies are still losing more than 2 percent of PKN Orlen. The second weakest company among blue chips PKO BP. On the other hand, the biggest increase presents PGNiG and KGHM.
In the afternoon we will know the data from the US. The most important will be the weekly reading on unemployment benefits in the United States and the publication of the consumer confidence index Conference Board.
PKN Orlen at the end of the rate of large companies
Przemysław Lawrowski
WIG20 just like any other stock exchange in Europe is gaining in value on Thursday morning. Among the largest companies listed on the Warsaw Stock Exchange, the largest decline can be proud of PKN Orlen, which before the start of the session reported quarterly results.
WIG20, along with other European indices started Thursday’s trading in shares of gains . The exception on the map is an exchange Swiss and Greek, which lose their minimum value.
markets all the time helps the good condition of the oil market. No matter there are also increases in Asia. Near yesterday’s closing level is the London FTSE100. The local stock market is waiting for data on retail sales, which will appear at 10:30. If the predictions are confirmed (+4.4 percent year on year), we have to deal with the improvement in sentiment in the market.
WIG20 gains after the session about 0.3 percent. At the head of the blue-chip rate is KGHM, which slowly is approaching the level of PLN 80 per share. As well copes mBank and BZ WBK. Bank shares bounce after yesterday devaluated. The weakest company PKN Orlen, which showed the results for the first quarter of this year. Fuel company earned about 60 percent less year on year. Net profit amounted to 336 million, with the largest increase in sales, the company reported on the Czech market.
The market is waiting for the next move Mario Draghi
Przemysław Lawrowski
Further increases in oil prices and positive sentiment in Asia will help on Thursday, investors from Europe outputs “the dash” . Peace of mind can disturb the ECB decision on interest rates. Morning players from the Vistula will also look at the results of PKN Orlen.
The improvement of the situation at the end of Wednesday’s session largely determined by an increase in oil prices. With the sharp “firing” in raw material prices we had to deal after the US Department of Energy reported data on stocks of fuel in the USA. It turned out that the amount of accumulated oil rose by 2.08 million barrels, while the market expected a rise of 2.4 million barrels.
On Thursday morning, the “black gold” is still more expensive. After 7:00 Brent oil price has already exceeded $ 45 per barrel. That’s more than the market developed before the last talks manufacturers in the capital of Qatar. A slightly positive territory on Thursday are also Asian stock exchanges. Shanghai stock market is growing, and the index of the Tokyo Stock Exchange can boast an increase of more than 2 percent.
It is these two factors make the beginning of Thursday’s session in Europe can be quite successful. At the end of Wednesday’s trading, the WIG20 index reached 1,962 points. During the day, the situation on the stock markets may spoil the decision of the European Central Bank on interest rates (13:45) and the words of Mario Draghi at the press conference (14:30). These events did not arouse enthusiasm in the market, as the market rather not count on further easing of monetary policy in the euro area.
Last month, the ECB has not only reduced the level of interest rates, but also announced a larger program of asset purchase and another round of cheap loans to the banking sector. Deposit rate in the euro area decreased to -0.4 percent and the refinancing rate, called the main interest rate has gone down from 0.05 percent to 0 percent. In turn, the asset purchase program has been increased by € 20 billion per month, so now the bank will buy securities for 80 billion per month. ECB chief added, however, that this step, the bank ends a series of reductions in the cost of capital.
In addition to the ECB’s decision on Thursday, the market learns to read of retail sales in the UK (10:30) and the minutes of the last MPC meeting (14:00 ). Information from the British Isles will not change much on the local stock market, as a major risk factor, which worried investors is the June referendum on continued membership of the country in the European Union.
The market situation almost bring the data from MPC . At the last meeting the council decided to keep interest rates unchanged. For the moment nothing indicates that there is any changes in monetary policy Polish.
Thursday is also the continuation of the publication of first quarter results on Wall Street. The report shows, among others, Google, General Motors, Microsoft, Starbucks and Visa. Of these only car company will show results before the session.
The financial report released on Thursday morning PKN Orlen. The company earned in the first quarter of 337 million (gains attributable to shareholders of the parent company), against 756 million profit in the same period a year earlier. The market expected a profit of 785 million.
the above text is an expression of personal opinion and the views of the author and should not be construed as a recommendation to buy or sell securities.
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