Feb 20 • 19:43 UTC 🇵🇱 Poland Rzeczpospolita

The Weakness of the American Market Affects Others

European markets had a relatively good week, but Poland's market faced declines, heavily influenced by disappointing economic data from the U.S.

This past week was quite positive for European markets, with many experiencing gains on Friday; however, Poland's stock market did not follow this trend. Polish stocks showed significant red, particularly on the Warsaw Stock Exchange, where declines accelerated after reports indicated higher-than-expected inflation in the U.S. and lower-than-anticipated GDP growth in the last quarter of the previous year, leading American index futures to drop sharply.

By the afternoon, domestic indices hovered around daily lows, with the WIG20 index down by 0.8%. Among the blue-chip companies, Kruk was notably the weakest performer, experiencing a drop of 6.7% due to disappointing results from the previous year. Other decreases were noted for companies like Allegro, Orange, and Modivo, while nearly all banks traded in the red. Conversely, some companies like Budimex, Dino Polska, and Pepco Group managed to maintain gains of over 1% towards the end of the day.

The trends observed on the Polish Exchange reflect a broader correlation with the American economy, highlighting the interconnectedness of global markets. The adverse economic indicators from the U.S. have created significant ripples, affecting investor sentiment not only in Poland but in various global regions, showcasing the ongoing challenges as markets adjust to fluctuating economic signals from one of the world's leading economies.

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