CEE MARKETS-Stocks retreat, FX drifts sideways with ECB eyed
PRAGUE, July 16 (Reuters) - Central European stocks mostly
gave up gains from the previous session on Thursday while
currencies eased a touch, with markets caught between global
worries over U.S.-China trade and awaiting cues from an ECB
meeting.
Warsaw stocks fell half a percent and Budapest
was down 0.3%, although a rise in Czech utility CEZ
helped buoy Prague.
Currencies for the most part traded sideways after gaining
some momentum this week.
The Polish zloty eased 0.3% and the Czech crown
was down a touch at 26.678 to the euro at 0836 GMT
after matching its July high of 25.575 on Wednesday.
Hungary's forint was flat at 353.91.
"The Hungarian currency has been stuck in a more and more
narrow range," Equilor said. "Bigger moves could start in the FX
market in the afternoon as the European Central Bank has its
rate meeting later today."
Central European rate setters have eased policy to counter
the harsh economic impact of the COVID-19 pandemic but are
mostly seen taking a pause, especially with inflation remaining
elevated.
The ECB, after extraordinary moves, is also all but certain
to keep policy on hold on Thursday.
Risk appetite took a hit due to worries about a wide-ranging
dispute between the United States and China over the control of
advanced technologies and the protection of civil liberties in
Hong Kong. A growing number of coronavirus cases in parts of the
world was also giving investors pause.
On bond markets, the Czechs were offering Treasury bills
following the sale of a rare euro-denominated bond on Wednesday
that drew bids of over 1 billion euros for the offer of 300
million.
Hungary and Romania will also hold sales.
"While Hungary issues its plain-vanilla benchmark bonds,
likely attracting healthy demand anew, Romania comes with a 2025
(state bond)," Raiffeisen said. "The latter was well bid at
previous auctions and we expect this to repeat today."
CEE SNAPSHO AT
MARKETS T 1036
CET
CURRENC
IES
Latest Previou Daily Change
s
bid close change in 2020
EURCZK Czech <EURCZK 26.6780 26.6685 -0.04% -4.67%
= crown =>
EURHUF Hungary <EURHUF 353.910 353.910 +0.00% -6.43%
= forint => 0 0
EURPLN Polish <EURPLN 4.4860 4.4743 -0.26% -5.12%
= zloty =>
EURRON Romanian <EURRON 4.8430 4.8445 +0.03% -1.13%
= leu =>
EURHRK Croatian <EURHRK 7.5320 7.5323 +0.00% -1.15%
= kuna =>
EURRSD Serbian <EURRSD 117.580 117.620 +0.03% -0.01%
= dinar => 0 0
Note: calculated from 1800
daily CET
change
STOCKS
Latest Previou Daily Change
s
close change in 2020
.PX Prague 949.63 948.110 +0.16% -14.88%
0
.BUX Budapest 35268.7 35371.8 -0.29% -23.47%
2 8
.WIG20 Warsaw <.WIG20 1786.17 1794.78 -0.48% -16.93%
>
.BETI Buchares 8475.79 8439.27 +0.43% -15.05%
t
.SBITO Ljubljan <.SBITO 866.40 870.67 -0.49% -6.42%
P a P>
.CRBEX Zagreb <.CRBEX 1608.03 1607.57 +0.03% -20.29%
>
.BELEX Belgrade <.BELEX 658.24 655.53 +0.41% -17.89%
15 15>
.SOFIX Sofia <.SOFIX 442.45 442.17 +0.06% -22.12%
>
BONDS
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
CZ2YT= 2-year <CZ2YT= 0.2000 0.0960 +087bp +10bps
RR RR> s
CZ5YT= 5-year <CZ5YT= 0.4800 0.0270 +113bp +4bps
RR RR> s
CZ10YT <CZ10YT 0.9360 0.0560 +139bp +6bps
=RR 10-year =RR> s
Poland
PL2YT= 2-year <PL2YT= 0.1220 -0.0120 +079bp -1bps
RR RR> s
PL5YT= 5-year <PL5YT= 0.7710 -0.0400 +142bp -3bps
RR RR> s
PL10YT <PL10YT 1.3470 -0.0150 +180bp -1bps
=RR 10-year =RR> s
FRA
3x6 6x9 9x12 3M
interba
nk
Czech <CZKFRA 0.34 0.35 0.36 0.34
Rep ><PRIBO
R=>
Hungary <HUFFRA 0.68 0.68 0.67 0.70
><BUBOR
=>
Poland <PLNFRA 0.20 0.22 0.22 0.25
><WIBOR
=>
Note: FRA quotes are for
ask prices
********************************************
******************
(Reporting by Jason Hovet in Prague, Anita Komuves in Budapest;
Editing by Shailesh Kuber)
Source: Read Full Article