Stock indices declined worldwide. The Dow Jones Industrial Average dropped from 13,300 all the way 12,900 (Friday’s opening) while the S&P 500 tumbled from 1,474 to 1,428. The perspectives of the American economy do not look good and investors are moving their funds to safer investment vehicles. Friday’s nonfarm payrolls report showed that only 18K new jobs were added in the nonfarm sector. The news caused US indices to open in red. The chance of another interest rate hike increases and those are bad news for equities.

Indices worldwide resembled American indices. The Japanese index, the Nikkei 225, tumbled from 15,300 to 14,600. European stock indices did not do any better. German’s DAX declined from 8,070 to 7,820 while the French CAC 40 decreased from 5,650 to 5,450.

Polish investors cannot be in good mood after this past week’s performance of the WIG 20. The Warsaw Stock Exchange’s major index lost 3.9% to 3,410. and it is getting close to an important support level at 3,370. Due to the lack of any macroeconomic publications from the local market, Polish investors reacted to news from abroad. The Polish economy is not doing as bad as the stock market though. Only inflation is increasing at a faster pace than analyst forecasted. Expectations for another interest rate hike in Poland are stronger, which makes the equities market less attractive to investors.

Adam Narczewski