By: The Quinnipiac University Economics Research Team, Jack French
The market rebound continued at a decent pace this past week with all but Slovakia posting a gain. With trading closed on Friday across all the markets four of the five Central European indices finished the four day trading period with gains of more than two percent. The Romanian BET led all indices with a gain of five and a half percent while the Slovakian SAX lost about three quarters of a percent. The Czech PX finished up nearly four percent, and the Polish WIG 20 and Hungarian BUX were up two and a quarter and two and three quarter percent respectively.
Slovakia once again split from the remaining indices after being the only one to lose ground last week as well. The US had a very strong week and was closely matched by the UK FTSE with both posting gains of nearly four and three quarters percent.
While still below their pre-outbreak February levels, markets have risen well above their lows. The US market has reentered a bull market after rising more than twenty percent above its recent low point. However, there is still some speculation that those lows will be revisited as the economic fallout proves to be worse than is widely anticipated.
Comparing across markets shows that the US is recovering somewhat faster than the CEE indices. Having closed Thursday at 320, the SAX is only barely above its low of 315. The Hungarian BUX is also seeing a slightly slower recovery. The Polish WIG 20 is showing a pretty quick bounce back but its low was worse than the other CEE indices.
Source: Own calculations based on data collected from each index. The first graph shows the previous week’s performance. The remaining graphs show the three-month performance of each of the indices.