Furthermore, Poland and other central European markets have been ruffled by the dispute between Russia and Ukraine over a naval incident, but some argued that the fallout was limited. Senior European politicians suggested new sanctions against
Moscow, but some diplomatic sources warned that the divided European Union was unlikely to reach a consensus on the matter.
“People mostly think that there will be no escalation which would lead to additional sanctions,” Noemi Holecz, chief analyst of Equilor Brokerage in Budapest, told Business Recorder.
Federal Reserve Chair Jerome Powell’s comments on Wednesday were also closely monitored as expectations for fewer Fed rate hikes could make Central European assets more attractive.
“What they have said so far (concerning interest rate prospects), have been mixed, but yes, the comments can have an impact,” one Budapest-based fixed income trader told Business Recorder.
For more information on the Polish markets, visit our Poland category.