• South-eastern European equities are booming –

Following weak US labour market data, it is becoming increasingly likely that the Fed will make its first interest rate cut this year on 16/17 September. The only question is how big the rate cut will be. The stock and crypto markets reacted positively to the new rate cut speculation. Wall Street reached new all-time highs, as did gold. AI stocks such as Oracle and Nebius literally went through the roof, rising 37% and 50% in one day. However, the question is whether this will lead to the formation of bubbles. Political risks and budgetary problems, such as those in France, and even the firing of Russian and Belarusian drones at Poland, did nothing to dampen the positive mood on the global stock markets.

Even though most investors today seem to be focusing solely on the next AI opportunity, it is also worth taking a look at undervalued stocks from South-Eastern Europe. Almost unnoticed by the investment community, stocks from South-Eastern Europe in particular are racing from one high to the next. The SETX share, an artificial product of the Vienna Stock Exchange for shares from the South-Eastern European region, has already risen by 36%, far outperforming the DAX with an increase of ‘only’ 18.3%.

It is therefore still worth taking a look at Eastern Europe, including countries such as Georgia and Kazakhstan with the highest GDP growth rates. Andreas Männicke also shares his assessments of the new opportunities in Eastern Europe in his stock market newsletter EAST STOCK TRENDS (www.eaststock.de) and in his new EastStockTV video, episode 256, at www.YouTube.com. By the way: If, like Andreas Männicke, you want to change the crazy world a little, create more harmony in the world and are looking for a new energy source with like-minded people, you should register now with the new social network ‘Tribe’ at https://tribe.de/free/about?ref=2002482. On Monday, there will be an exciting presentation and workshop by Tribe in a Zoom call, where ways to financial freedom will also be presented. If you are interested, please contact info@eaststock.de and register with Tribe now, because Andreas Männicke is also planning a new online stock market round table there, which you can join.

Now the Fed must show its colours and deliver, otherwise…!

Following the very weak US labour market data, it seems a foregone conclusion that the Fed will make its first interest rate cut this year on 16/17 September. The only question is how big the rate cut will be. Now the Fed must show its hand and, in line with Trump’s wishes, ‘deliver’, otherwise the stock markets will likely react with disappointment and price declines.

Cryptocurrencies and gold/silver still in demand

Both the stock and crypto markets rewarded these interest rate cut fantasies with rising prices. The indices on Wall Street reached new all-time highs on 11 September. Prices on the crypto markets also continued to rise (BTC from 112,000 to 116,000 USD and ETH to 4,600 USD, both close to new all-time highs). Gold also reached a new all-time high of $3,650/ounce and silver a new annual high of $42/ounce. Copper also rose again to over $10,000/tonne.

AI stocks with strong price gains

However, the biggest gains were made by AI stocks Oracle with almost 40% in one day and Nebius with as much as 50% in one day, both due to new orders to expand AI infrastructure capacities. Nebius received the accolade from Microsoft with an order volume of USD 17 billion over 5 years to build new AI capacities, with Nebius working closely with Nvidia. After such strong upward price swings, one wonders whether AI bubbles are now forming – similar to the internet bubbles on the Neuer Markt in 2000, as price-to-sales ratios are already extremely high.

Are investors too carefree?

Neither the Russian and Belarusian drone attacks on Poland nor the enormous political and, above all, fiscal risks in France and Japan have been able to dampen the positive mood on the stock markets, which gives pause for thought. Not only did the stock indices in the United States reach new all-time highs, but so did those in Japan, where, as in France, the prime minister was replaced. Even the assassination attempt by Trump supporter Charlie Kirk had no impact on the stock markets. But what would happen if Trump were assassinated? Then there would probably be a threat of civil war in the US. In Paris, the austerity programme could now lead to strikes and civil unrest, with suburbs going up in flames. Even the attack on Hamas leaders in Qatar had no consequences. Have investors become too carefree?

In Germany, more and more people are dissatisfied with Merz’s government policy, and the AfD is gaining more and more supporters, as was the case in the last local elections in North Rhine-Westphalia, where the AfD received over 25% of the vote in Cologne and over 38% in Gelsenkirchen. The AfD even tripled its share of the vote. The big losers were the Greens. The CDU and SPD were able to narrowly maintain their position, but they cannot be satisfied with this because the AfD caught up strongly and displaced the Greens. Is this a new trend? In the UK, too, there are now large demonstrations against migrants and a shift to the right.

Shares from Eastern Europe remain top-rated and inexpensive

Shares from Eastern Europe are significantly cheaper and yet still offer good opportunities, with the stock markets in South-Eastern Europe currently booming and reaching new annual highs in September. The CECE Index (with shares from Poland, Hungary and Czechia) rose by 33.5% in euros since the beginning of the year, but by 50% in US dollars. The SETX Index for shares from South-Eastern Europe has risen by 36% since the beginning of the year, while the DAX has risen by only 18.3% and shares from the USA, with the exception of a few AI shares, have hardly risen at all in euro terms due to the weak US dollar.

Shares from South-Eastern Europe are booming

The BTX Index for shares from Bulgaria also rose by 24% (previous month +22%) and the ROTX Index for shares from Romania also rose by 22% (previous month +22%), significantly outperforming the DAX at 18.3%. Since March, five Romanian blue chips have been tradable on German stock exchanges for the first time. Romanian shares will be featured in a special report in the next edition of the East Stock Trends stock market newsletter (www.eaststock.de). With Bulgaria, another Eastern European country will join the eurozone next year. The share prices of Eastern European banks are performing particularly well. The CROX Index for shares from Croatia has also risen by 20.8% since the beginning of the year. Shares from Slovenia have also gained over 30% on average with the SBI index.

Warsaw Stock Exchange stable despite drone attacks

Despite Russian drone attacks on Poland, which triggered Article 4 of the NATO Treaty, i.e. consultations, the Warsaw Stock Exchange remained relatively stable. The PTX Index fell only slightly. However, even after the correction, the PTX Index was still up 31.4% since the beginning of the year. The Budapest and Prague stock exchanges also performed similarly well this year. The CTX index for shares from Czechia rose by 35.8% and the HTX index for shares from Hungary by 28.6%. , all far better than the DAX. However, the Eastern European stock markets are given very little attention in the media, which is why hardly anyone has them in their portfolios.

First inform yourself, then invest

Find out more about the background and development of the Ukraine/Russia crisis now. but also the future recovery potential of undervalued shares from Eastern Europe. There are also new opportunities in the Baltic States, South-Eastern Europe and the CIS republics (Kazakhstan, Georgia), with all the respective share indices showing gains in 2023. In 2023, 12 stock exchanges from Eastern Europe were among the 30 best-performing stock markets in the world, with five clearly outperforming the DAX. In 2024, nine stock exchanges from Eastern Europe once again outperformed with strong gains. And since the beginning of the year, five stock exchanges from Eastern Europe have once again clearly outperformed the DAX. It is therefore still worth looking beyond the horizon to Eastern Europe.

Order a trial subscription now (3 issues by e-mail for only £15) to the monthly stock market newsletter EAST STOCK TRENDS (EST) with another Ukraine/Kazakhstan special and a dividend special, as well as lots of background information and new investment suggestions such as the ‘Stock of the Month’ and lucrative certificates at www.eaststock.de, under ‘Stock Market Newsletter’. The last EST was published on 28 August 2025 with a special on bank shares from Eastern Europe. The next EST will feature a special on Romanian shares.

TV/radio notes: On 19 July 2025, Andreas Männicke was interviewed by Michael Mross on Mmnews-Plus about the top shares in Eastern Europe. On 3 June 2025, Andreas Männicke was also interviewed by Heinrich Leben on Börsenradio Networks about new opportunities in Eastern Europe, particularly in Ukraine, following the end of the war. All radio and TV interviews can be downloaded from the video archive at www.eaststock.de, including the latest video on EastStockTV, episode 256. By the way: have you already subscribed to the new YouTube channel BRICS-TV in addition to the YouTube channel EastStockTV ? If you are interested in in-depth coaching from Andreas Männicke via the Tribe platform and also want to change the world, then take a look at Tribe at https://tribe.de/free/about?ref=2002482 and let me know what you think at info@eaststock.de

Seminar note: If you are interested in new Eastern stock exchange seminars ‘Go East’ or a BRICS seminar in Frankfurt/M or other cities, please contact the EST editorial team (www.eaststock.de). If you are interested in East Stock Exchange webinars and BRICS webinars, please also get in touch.

You can now also subscribe to Andreas Männicke’s free newsletter with the latest news about the global and Eastern stock exchanges and the BRICS at www.eaststock.de. Please also register at info@eaststock.de if you are interested in a new BRICS newsletter from Andreas Männicke.