Stock outlook | Fio Bank

22.2.2023 08:57

After the decline on Wall Street, Europe opens only slightly lower

On Tuesday, Wall Street had its worst session in the last 2 months, the indices lost around -2%. Investors are reacting to a possible rise in the so-called terminal interest rate above 5% after last week’s inflation data. Currently, overseas futures are growing slightly (+0.2%). Today we will watch the minutes from the FED meeting in the evening. Asia lost up to -1% overnight, European futures do not yet indicate any dramatic movement (-0.2%). Compared to US indices, Europe is doing better so far. E.g. DAX added +10.5% this year vs. the SP500 index after yesterday’s decline “only” +4%. We’ll see if (and how) this gap narrows in the coming days. The PX index of the Prague Stock Exchange added +0.7% to 1389 points yesterday. In the center of events was once again ČEZ, for whose shares a movement of +/- 3% has become the norm in the last 7 days. CEZ shares rose +3.9% to CZK 995 on Tuesday, when in the morning they defended the level of the 200 daily moving average (CZK 943). The surrounding utilities also did well (outside of Poland, growth in allowances). Domestic banks KB and Moneta lost slightly. Today we would expect more moderate activity compared to yesterday, banks could try to consolidate.

Pavel Hadroušek, broker, Fio banka, as