A global bull market was going on and many major stock market indices reached their historical peaks last week. During the last five trading days, the DJI increased by 0.4%, while the S&P500 and the NASDAQ rose by 0.2%. In Europe, the British FTSE250 grew by 0.5%, the German DAX soared by 0.3%, whereas the French CAC40 declined by 0.2%. The past week was rather smooth. The economic calendar was not rich. Moreover, a diplomatic solution of the Catalonia’s government concerning the independence of the region did not lead to the increase of the political risk. Investors learnt the minutes from the last meeting of the FOMC last week. The document did not contain any surprising news. Nevertheless, the council was divided to the path of inflation projections. This may be an important aspect influencing further monetary policy of the Fed. It should be added that the September’s reading of the CPI stood at 2.2% y/y.

Tygodniowy komentarz MM Prime TFI S.A. - 2 października 2017 r.

Weekly comment MM Prime TFI  - October 2, 2017

Undoubtedly, the FOMC meeting was the highlight of the past week’s economic calendar. The Federal Reserve returned to work after a holiday break and aroused a lot of market emotions. The Fed announced a beginning of the balance sheet reduction process. Moreover, the bank planned to raise interest rates one more time this year and next three times in 2018. A few months ago this had been a basis scenario, whereas a series of mixed data from the US economy and the devastating hurricanes made investors skeptical about the further pace of Fed’s monetary tightening. Thus dollar appreciated against euro noticeable last week. The message of the Federal Reserve adversely affected the stock market sentiment in the second half of the past week. During the last five trading days, the DJI increased by 0.4%, the S&P500 soared by 0.1% and the NASDAQ fell by 0.3%.

Weekly comment MM Prime TFI  - September 18, 2017