The FOMC meeting during which the Committee has determined the shape of the quantitative easing program and interest rates was the most important event for capital markets during last week. The QE3 was reduced by $ 10 billion, and the key phrase about keeping interest rates at low levels for a ‘considerable time’ remained in the statement.

After a busy first week of September, when the unexpected decision of the ECB to cut interest rates electrified investors, the second week of the month did not bring any significant economic data. From the perspective of the last few weeks no signs of a panic are observed on the major global markets

While situation in Ukraine caused depreciation of indices in the last week of holidays, unconfirmed reports of peace talks in the first week of September brought euphoria to the stock markets in Kiev and Moscow. The Warsaw Stock Exchange, especially the largest companies, were one of the beneficiaries. The WIG 20 index surged by 5.15%, reaching the highest level in the year 2550 pts.

Last week could have been very good for the WSE. Unfortunately the situation was complicated by the exacerbation of the Ukrainian conflict, where Russian troops occupied areas near the Sea of Azov. The President of Ukraine called it an open aggression. Indices tumbled, especially indices fell sharply at Książęca, where the WIG20 fell that day by almost 2%.

During the last week stock across the globe rebounded from declines noted in July and August. Poor PMI readings from main European economies didn’t dispirit bullish investors. European industrial PMIs turned out to be worse than expected and lower than a month earlier. France was one of the main losers last week.