WSE may continue to fall – Onet.pl

Back of investors from a long weekend in May turned out to be unsuccessful. On Wednesday, the WIG20 index lost 1.8 percent. and closed at 1865.25 points. Is the lowest closure of two months. The scale of the sell-off highlights the fact that the red yesterday finished 17 of the 20 largest companies.

Reasons selling off the shares were few. First, the deterioration of the investment climate in global markets, which drew down European indices at 3-week lows. It was a reaction to the recent disappointing news from the Chinese economy (PMI), yesterday’s weak data from the euro zone (retail sales) and a worse-than-expected reading of the April ADP report on employment in the US private sector, which reported an increase in headcount by 156 thousand. people with a forecast of 195 thousand. (Although it should be borne in mind that published on Wednesday, other data from the US had a positive meaning, but this was ignored). Hard shadow on sentiment put to a discount on the copper market and declines in oil prices.

Invariably also WSE pregnancy local topics. It is mainly the fear of Polish rating cut by Moody’s during the review scheduled for 13 May. The uncertainty associated with the final shape of the so-called. Assistance Act frankowiczom. Political risk. Or recent weak data coming from the Polish economy (industrial production and retail sales in March, industrial PMI index for April).

On Thursday, the Warsaw Stock exchange, as well as other European hardwood floors, can relieve recent declines. It appears that yesterday’s declines on Wall Street (S & amp; P500 -0.6 per cent .; Nasdaq Composite -0.8 per cent.), As well as falling today in most hardwood floors in Asia, are already included in prices. Therefore, it is a good chance that the players on the Stock Exchange will buy the cheapest of two months the shares, playing the reflection not only in Europe but also in the USA. Especially that today’s calendar is quite poor (in practice only count requests for benefits in the United States and service PMI for the UK), so there is no risk of the publication of disappointing data, which will worsen the mood. Potential rebound should not be too strong. Tomorrow in fact will be published monthly data from the US labor market (eg unemployment, non-farm payrolls, hourly wages), and the ADP report suggests that they will be weaker than expected.

The investment climate on the Warsaw Stock exchange remains weak. The WIG20 index lost more than a month. The situation on global markets, where rising risk aversion, and fear of Moody’s and law francs make in the coming weeks should be expected further declines. A potential target for the WIG20 is the psychological level of 1,800 points. If he was defeated, and it will be possible only in case of very severe deterioration of the investment climate in the world, the next goal is only January hole at the level of 1,657.4 points. At the moment, however, the probability of achieving less than 25 percent.