After significant domination of bulls on Wall Street in February, March is characterized by vast majority of the supply side. The S&P500’s declines last week were connected with the factor that greatly strengthened the US currency - expected hawkish FOMC interest rates statement on Wednesday.

Surprising scale of interest rates’ reduction was the crucial event of the week for the Warsaw indices. Cut made by the MPC amounted to 50 basis points, which is twice more than the market consensus. Combining with Monday’s and Tuesday’s decrease, Wednesday’s growth impulse was quite significant. Bullish technical scenario was realised on blue chips the following days, in contrast to the stock exchange medium-sized companies.

The small-sized companies’ bull market was observable on Warsaw Stock Exchange in February, as we can see on the charts of individual indexes. Best-performing were companies from the sWIG80. Small caps gained almost 6% last month, making up some of the losses from 2014. In this case, the growth catalysts can be considered as a recovery in the economy and low interest rates.

As it was in February, we have witnessed a very weak Warsaw blue chips’ strength comparing to European counterparts last week. Weaker banking sector condition, which cannot recover after rapid appreciation of the Swiss franc, was the problem of the largest companies’ index. On the other hand, small companies benefit from the favorable economic situation.

Last week on European stock exchanges was quite neutral. The DAX’s rise from the midweek has been confirmed only in the last hours of Friday’s trading. This means that the index has reached a new all-time high at 11 081 points. Investors uncertainty has been strengthened by Greek negotiations with Germans, who did not agree to the half year funding period proposal. Information about the agreement and staying in the Eurozone was public after the trading day.