EXCHANGE
Turnover approached 2.20 billion zlotys, of which nearly 1.81 billion zlotys were on the WIG20. The market’s breathing confirms the rise with 19 companies in the WIG20 and a price increase for 54 percent of companies across the board, with 33 percent discounted and 13 percent unchanged.
From the end‑of‑session perspective, it is clear that the focus of traders was on U.S. labor market data, which proved mixed in tone but were taken as supportive of maintaining the status quo in the U.S. central bank’s monetary policy.
MACROECONOMICS
In essence, investors focused on the lower‑than‑expected number of non‑agricultural jobs, which rose by only 57,000, while the unemployment rate fell from 4.3 percent to 4.2 percent.
The change in job numbers showing a downward trend in new job creation allowed the assumption that, in today’s power balance, the central bank cannot risk raising interest rates. The result was gains in stocks on the major markets, but for Europe the key variable was the dollar’s weakness.
CURRENCIES
The euro’s strengthening against the dollar by 0.6 percent enabled a dynamic rise in the German DAX, which gained an impressive 2.16 percent today.
In the case of the GPW, the upward impulse from that direction was complemented by the zloty’s strengthening against the dollar by 0.8 percent and 0.2 percent against the common currency.
A proper foreign session, in the context of a return to risk appetite, was complemented by a technical picture in which the market tried from the morning to break the WIG20 above the local down‑trend line.
Finally, resistance was broken by a dynamic white body, which causes resistance to reappear on the market radar around 3700 points, whose testing – with a good power balance in the environment – appears possible already on Friday’s session.
