June 26, 2018 / 9:34 AM / a month ago

CEE MARKETS-FX, stocks regain some ground, markets fragile

    * Currencies firm slightly, staying near multi-month lows
    * Equities mostly track cautious rebound in Western Europe
    * Hungarian bonds steady, but markets remain fragile
    * Poland, Hungary tension with Brussels not a key factor

    By Sandor Peto
    BUDAPEST, June 26 (Reuters) - Most Central European
currencies and stocks regained some ground on Tuesday after
falling in the previous session as fears of a trade war between
the United States and partners caused investors to shy away from
riskier assets. 
    Western European equities also rebounded and sentiment in
Europe's emerging markets slightly improved, with a months-long
dollar rally slowing, traders said.
    "It may be the eye of the storm, though," one Budapest-based
fixed income trader said.
    "The causes of why our markets got a beating (in the past
months), like relatively low nominal interest rate levels, are
here to stay."
    Hungary's 10-year government bond yield, trading flat at
3.59 percent on Tuesday, has risen by more than 1.6 percentage
points from record lows set in January.
    A week ago the Hungarian central bank abandoned an earlier
target to keep long-term yields relatively low and set a
time-frame for keeping its benchmark, short-term interest rates
at record lows.
    The forint has meanwhile been trading near record
lows of 327 versus the euro that were first set in early 2015.
    Yields in interest rate swaps moved slightly lower on
Tuesday, but government bond yields did not track the movement.
    The forint firmed 0.2 percent to 325.6 against the
euro by 0846 GMT, while the zloty rose 0.1 percent to
4.3365, after setting a 15-month low in Monday's session.
    The Czech crown gained 0.2 percent, to trade at
25.915 versus the euro, drifting off eight-month lows set last
week.
    Negative global sentiment towards emerging markets has kept
it near those levels even though some investors expect the Czech
central bank to lift interest rates further at its meeting on
Wednesday.
    Political tensions between Brussels and the governments of
Hungary and Poland are back on the table this week but are
unlikely to overshadow the global factors.
    European Union ministers are due to discuss concerns over
the rule of law in Poland on Tuesday.
    Some EU lawmakers urged the bloc on Monday to consider
stripping Hungary of its voting rights to punish it for
weakening the rule of law. 
    Hungary and Poland have been key opponents in Central Europe
of mass migration into the EU and policies backed by other EU
members including Germany to share the burdens of migration
across the bloc. 
     
               CEE MARKETS  SNAPSH   AT  1046 CET         
                            OT                      
                            CURRENCIES                    
                            Latest  Previo  Daily   Change
                                    us              
                            bid     close   change  in
                                                    2018
 Czech crown                25.915  25.959   +0.17  -1.50%
                                 0       0       %  
 Hungary                    325.60  326.17   +0.18  -4.63%
 forint                         00      50       %  
 Polish zloty               4.3365  4.3427   +0.14  -3.71%
                                                 %  
 Romanian leu               4.6675  4.6670  -0.01%   0.21%
 Croatian                   7.3820  7.4015   +0.26   0.62%
 kuna                                            %  
 Serbian                    117.98  118.09   +0.09   0.36%
 dinar                          00      00       %  
 Note: daily   calculated   previo  close   1800          
 change        from         us      at      CET     
                            STOCKS                        
                            Latest  Previo  Daily   Change
                                    us              
                                    close   change  in
                                                    2018
 Prague                     1064.6  1066.4  -0.17%  -1.26%
                                 0       0          
 Budapest                   35224.  35064.   +0.46  -10.55
                                35      75       %       %
 Warsaw                     2167.2  2155.9   +0.53  -11.94
                                 5       0       %       %
 Bucharest                  7977.5  7965.6   +0.15   +2.89
                                 6       5       %       %
 Ljubljana                  885.41  886.75  -0.15%   +9.80
                                                         %
 Zagreb                     1832.4  1838.5  -0.33%  -0.56%
                                 6       1          
 Belgrade                   727.89  729.03  -0.16%  -4.20%
 Sofia                      633.06  632.40   +0.10  -6.55%
                                                 %  
                            BONDS                         
                            Yield   Yield   Spread  Daily
                            (bid)   change  vs      change
                                            Bund    in
 Czech                                              spread
 Republic                                           
   2-year                    1.069  -0.025   +175b   -3bps
                                                ps  
   5-year                    1.584  -0.009   +187b   -3bps
                                                ps  
   10-year                   2.194  -0.009   +185b   -3bps
                                                ps  
 Poland                                                   
   2-year                    1.651   0.026   +234b   +2bps
                                                ps  
   5-year                    2.554   0.046   +284b   +3bps
                                                ps  
   10-year                    3.24   0.083   +290b   +6bps
                                                ps  
               FORWARD      RATE    AGREEMENT             
                            3x6     6x9     9x12    3M
                                                    interb
                                                    ank
 Czech Rep             <PR    1.17    1.29    1.43  #N/A
               IBOR=>                               
 Hungary               <BU   0.705   0.905   1.105    0.27
               BOR=>                                
 Poland                <WI    1.75    1.77    1.82     1.7
               BOR=>                                
 Note: FRA     are for ask                                
 quotes        prices                               
 *********************************************************
 *****
 
 (Reporting by Sandor Peto
Editing by Catherine Evans)
  
 
 
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below