The Warsaw Stock Exchange reversed course on Wednesday, shedding early losses to close higher after Federal Reserve Chair Kevin Warsh delivered remarks that weighed on the US dollar.
The shift in sentiment came as investors reacted to the central bank chief's tone, which appeared to ease concerns about near-term monetary policy tightening, prompting a rotation out of cash and into risk assets.
According to Bankier.pl, the session was marked by significant volatility, with the market turning red in the morning before Warsh's afternoon speech acted as a catalyst for buying interest.
The dollar, which had strengthened on Tuesday as investors fled technology stocks for safe-haven assets, retreated following the Fed chief's comments.
This move helped support equity valuations across the region, including in Poland, where the WIG20 index likely benefited from the weaker currency environment and improved risk appetite.
The reversal follows a turbulent week for global markets.