There were not many investors who complained about the lack of emotions in the first week of December. American and European financial markets were looking forward to the public appearances of Fed’s and ECB’s presidents. As a result, the beginning of the week was quite smooth. On Wednesday, the fed chairmen Janet Yellen, who was discussing the Beige Book, confirmed an increase of interest rates on December. In the wake of that, the US markets started to decline. To add insult to injury, Mario Draghi, the president of ECB, in line with the consensus cut the deposit rate and extended QE on Thursday.

The last week of November brought the increases in American and European Stock Exchanges which were carrying on the boom. However, Warsaw Stock Exchange did not take a leaf from the foreign markets and it declined again. The weakest part of polish stock was definitely the WIG20. It did not matter, if the largest companies presented quite good financial results or not. Their index, which primarily is consisted of companies from banking, energy and raw materials sectors, was still abreacting the political uncertainty connected with plans and actions of a new government

After a very quiet and uncertain beginning of the week associated with earlier terrorist attacks in France, we saw increases on stock markets. Slightly worse publications than expected on industrial production (a monthly downturn of 0.2% against expected growth of 0.1%) in the USA caused deterioration on Wall Street. However, the key event for investors was a midweek release of the FOMC meeting minutes.

Weekly comment MM Prime TFI  - November 16, 2015

Once again, investors at Ksiazeca did not have an easy week. The WIG20 index dropped by 2% closing at 2015 points (a week before declined by 2.2%). Psychological support at 2000 points is quite close. In the same period, the German DAX grew by 1.3% and this was fifth consecutive week of growth. In comparison - the WIG20 fell fourth week in a row and did not benefit from better investment sentiment supported by potential expansion of QE program in Europe