Geopolitics and regulatory risk weigh on WSE on Wednesday
Warsaw’s stock exchange faced sharp declines on Wednesday, with the WIG20 index falling 1.5% at the open to below 2800 points before trimming losses to 0.2% by session’s end. The sell-off was fueled by escalating geopolitical tensions and a draft bill proposing a steep rise in corporate tax for banks. Markets reacted nervously to Donald Trump’s UN-related remarks suggesting NATO should consider shooting down Russian aircraft violating airspace, raising fears of further escalation.
Domestically, the proposed CIT hike to 30% in 2026—gradually reduced to 23% by 2028—sparked investor concern over bank profitability, dividends, and capital costs. Uncertainty around future tax policy reviews intensified risk aversion, weighing on Polish equities.
