Statistically, the worst month of the year – September – on the Warsaw Stock Exchange virtually massacred the Polish stock market. The WIG20 index of the largest companies closed the month firmly below 1,500 points for the first time in nearly twenty years. This level has been fiercely defended twice in the past two decades, and from here very strong rebounds have so far been derived after two crises – the financial and the Covidien. Breaking this level in such a dynamic and convincing manner is a very negative signal for the Polish economy in the long term.
Meanwhile, on the ocean, the US S&P500 index deepened this year's lows. This confirms the prevailing downtrend, which accelerated after the Fed removed any illusions that it would take action to favor a rescue of stock market valuations.
The dynamics of geopolitical events continue to unravel and create an ever stronger cyclone of uncertainty around, among others, the Warsaw Stock Exchange, treated by Western investors as a frontline market. The armed conflict in Ukraine, which has been ongoing for months, has been joined by escalating factors such as mobilization in Russia, nuclear threats, and mysterious incidents near the Nord Stream pipelines. At the end of the month, the Russian President also announced the annexation of occupied areas of Ukraine. Local political factors are adding to the international tension.