Yesterday, market sentiment supported the Governor of the Bank of England, Mark Carney, who announced the easing of monetary policy to mitigate the possible Brexitu. This will probably be an additional expansion associated with the program QE, stronger than cutting interest rates. Firstly, now the main interest rate is very low (0.5%), and besides, even lower rates will hit the profits of banks, which are in very poor condition. Deutsche Bank recently failed the stress test carried out by the Federal Reserve in the United States.
The FTSE 100 has grown from the beginning of the week about 6%, which is higher than before the announcement of the referendum. Also the other European indexes recovered the losses, though not as impressive as the aforementioned londynki index. Market expectations for further monetary easing in the UK and the euro area again propel capital to riskier assets.
The improved sentiment is gaining the Polish zloty, which in relation to the euro fell below 4.40, the franc Swiss in the vicinity of 4.06, which is respectively 15 and 20 cents lower than was seen exactly a week ago. However, further strengthening is not so obvious, because there is still a lot of unknowns associated with Brexitem, which may ultimately detracts from our currency.
Impressive growth observed in gold and silver. It is possible that we are at the beginning of a larger bull market. Of course, these metals are gaining market turmoil because they are regarded as safe assets, but it is worth noting that their prices go up since the beginning of this year. We are seeing increased interest in investing in gold through ETFs, which are obliged to purchase physical gold as part of the units. Some investors already sees potential in this metal seeking higher rates of return than the equity markets. Currently, gold is moving in the vicinity of $ 1400 an ounce and silver at around $ 20 per ounce.
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