Last week brought a continuation of declines on global markets. European stock exchanges took the hardest hit. Biggest loss was noted in Paris, where the CAC index slid more than 5 percent. The German DAX fell by 4 percent and finished below the psychological barrier of 9000 points.

Last week’s calendar was rich in both macro data and significant market events. This time it was not the ECB but the data from the American labor market that proved to be the most surprising. The ECB kept interest rates unchanged and announced the details of ABS-s and covered bonds purchase program. Nothing else was revealed that could surprise the markets. Meanwhile, the strong positive surprise came out of the American labor market, where the unemployment rate unexpectedly fell to 5.9%, the lowest level in more than six years.

Last week brought significant correction across most of the markets. Although the WIG20 lost more than 2%, the index managed to defend 2,450 points.

The FOMC meeting during which the Committee has determined the shape of the quantitative easing program and interest rates was the most important event for capital markets during last week. The QE3 was reduced by $ 10 billion, and the key phrase about keeping interest rates at low levels for a ‘considerable time’ remained in the statement.

After a busy first week of September, when the unexpected decision of the ECB to cut interest rates electrified investors, the second week of the month did not bring any significant economic data. From the perspective of the last few weeks no signs of a panic are observed on the major global markets