By: The Quinnipiac University Economics Research Team, Jack French
For the second consecutive week the Polish WIG 20 lost significant ground while the rest of the indices were pretty tightly grouped around even for the week. The WIG 20 was down nearly two percent. The US S&P 500 dropped about half a percent after hitting record highs on each of the last two Fridays. The UK FTSE gained about a quarter of a percent with a strong showing on Friday that made up for a weak performance on Wednesday and Thursday.
The Romanian BET and Slovakian SAX were both pretty much completely flat for the week with the BET being closed on Friday and the SAX closed on Monday. The Hungarian BUX once again led all of Central European indices and gained nearly half a percent. The BUX was followed very closely by the Czech PX which finished just fractionally lower than the BUX for the week and booked a gain of roughly four tenths of a percent.
The movement among the different indices was fairly closely related for this week with the clear exception of the Polish WIG 20 which diverged significantly from the larger trend. The WIG 20 looks somewhat similar to the indices later in the week but its large dip over the first four days was not shared by any other index.
The stock indices have been leveling off over the last one to three weeks following a period of substantial upwards movement for the majority of them. The S&P, BET, PX, SAX, and BUX have all been flat recently. The FTSE and WIG 20 have both dipped following their period of gains.
The three month returns are positive for every index except the Slovakian SAX. The SAX exhibits behavior very dissimilar to the other indices. This includes periods of being completely flat probably due to the markets being closed for a number of days and possibly low trading volume for the index.
The broad trends across all indices now look very similar for the three month window. It will be interesting to watch what the next direction the majority of the indices take as most appear to be at an inflection point now. It seems likely to expect that there will continue to be strong similarities across the indices with a few notable ongoing exceptions.