Equities Post Weekly Gains
Equities advanced last week after a
sharp Aug. 1 correction. The S&P 500 gained 2.4% over the last five
sessions.
In Poland, the WIG 20 rose 4.7%,
while the WIG Ukraine index — tracking Warsaw-listed Ukrainian agricultural
companies — surged 10.6%. Milkiland (MLK) shares jumped 19% to PLN 2.33,
valuing the company at USD 20mn. Astarta (AST) climbed 5.5% to PLN 49.8 (MCap
of USD 330mn), and IMC advanced 8.6% to PLN 27.9 (MCap of USD 270mn).
Despite August typically being a
quiet month for Wall Street due to summer holidays, the strong upward trend
remains intact, with major US indexes poised to notch fresh record highs before
a potential correction from overbought levels.
In the war developments, the
Netherlands will contribute EUR 500mn (USD 580mn) to Ukraine’s defense as part
of a US initiative, making it the first NATO country to donate funds through
the new program. The funds will be given under the Prioritized Ukraine
Requirements List, agreed by US President Donald Trump and NATO Secretary
General Mark Rutte in July. Under this program, NATO allies purchase military
equipment from US reserves for Ukraine. NATO members pledged in June to raise
core defense spending to at least 3.5% of GDP by 2035.
The Kiel Institute, which tracks
support to Ukraine, estimates that as of June, European countries had provided
EUR 72bn worth of military aid since the start of Russia’s full-scale invasion
in February 2022, compared to USD 65bn in US aid.
Meanwhile, Germany said that it will deliver two more Patriot air
defence systems to Ukraine in the coming days. It agreed to the move after
securing assurances that the US will prioritise the delivery of new Patriots to
Germany to backfill its stocks. These weapon systems are only made in the US.
POLITICS AND ECONOMICS
- Ukraine’s Inflation Slows to 14.1% YoY in July from 14.3% YoY in June
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