03.09.2007 - Daily Currency and Stock Markets Brief

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Monday was a rather calm day on both the currencies and equities markets. The lack of activity of American investors due to the Labor Day holiday caused really small movements of the main indices and currency pairs.

 

The EURUSD remained in a horizontal trend throughout the whole day in the 1.3622 – 1.3653 range. No effect on the major currency pair in the world had the Manufacturing PMI report from the Euro zone. The PMI report measures the activity level of purchasing managers in the manufacturing sector, with a reading above 50 indicating expansion. The report showed that the European economy is still doing pretty well with a reading of 54.3 against the 54.2 expectations. Due to the lack of important macroeconomic data publications, the Polish currency follows the majors. The USDPLN remained in the 2.7956 – 2.8042 range while the EURPLN oscillated around 3.8128 – 3.8239. The situation on the currency markets will be determined by swings of the EURUSD and risk aversion on the equities markets.

Investors were in a sleepy mood also on the equitites markets. Investors are certainly waiting for the interest rate decisions of the Bank of England and the European Central Bank. Indices in Europe and Asia gained but with little activity of American investors. Germany's DAX Index increased 0.1%, while France's CAC 40 declined 0.3%. The FTSE 100, UK’s benchmark index, gained 0.2%. The Stoxx 50 added 0.1% and the Euro Stoxx 50, a measure for nations sharing the euro, lost 0.1%. Indices in most Asian countries also ended the day in green. The exception was Japan where the Nikkei 225 declined 0.3% to 16,524.93. The Japanese government reported that corporate investments declined along with wages.

The Warsaw Stock Exchange (WSE) most of the time follows the American indices. Since stock exchanges in the US were closed for the day, today’s session was very calm. The broadest measure of Polish equities, the WIG index, gained 0.59%. The WIG 20, the blue-chip companies’ index, rose 0.33% to 3,613.40. Volume was pretty low at zł.1.2 billion. Most attention was focused on Agora, the media company, which gained 5.23%. The market is still discounting the Friday’s information about choosing a new CEO – Marek Sowa. The next couple of days will more volatile, especially with American players coming back to the game.


Adam Narczewski