WARSAW, Jan 2 (Reuters) - Central European stocks started
the new decade on a positive note, with the Budapest stock
exchange reaching a record high, after a report that the U.S.
and China would sign a trade deal in January and China would
further ease monetary policy.
U.S. President Donald Trump said on Tuesday that Phase 1 of
trade deal with China would be signed on Jan. 15 at the White
House and China's central bank said on Wednesday it was cutting
the amount of cash that banks must hold as reserves.
"Today's trading could be determined by optimistic
sentiment," brokerage Equilor said in a note.
Budapest's main index had climbed 0.41% by 0928 GMT.
Warsaw's WIG20 rose 0.99% and in Prague the PX index
was up 0.52%.
Bond yields also rose as investors abandoned safe-haven
assets on hopes of a brighter outlook for the world economy in
2020.
Czech 10-year yields were at their highest point
since June, rising almost 3 basis points to 1.664%. Polish
10-year yields jumped 8.5 basis points to 2.15%.
The Czech crown started the year near its
strongest level against the euro since April 2018, hitting
25.405, despite a December Purchasing Managers' Index reading of
43.6, one of Czech manufacturing's worst contractions in over a
decade.
"The crown is entering the new year in good condition," CSOB
said, adding a positive rate differential and easing global
risks at the end of 2019 have helped it.
The Polish zloty was little changed against the
euro at 4.2559. The Hungarian forint gained 0.23% to
330.04.
"The forint has been trading in a tight range versus the
euro, between 330 and 332 for days, and we do not see change in
this for the time being," said Equilor.
Poland's manufacturing PMI came in at 48.0, above the 46.8
forecast of analysts in a Reuters poll. That suggested Polish
manufacturing may have weathered one of its worst downturns in
two decades and begun to recover.
"The fall in orders is primarily due to abroad, while
domestic orders are quite good ... This once again proves that
domestic demand, and especially household consumption, is
currently stabilising the Polish economy," Monika Kurtek, chief
economist at Bank Pocztowy, wrote in a note.
Hungary's seasonally adjusted PMI rose to 53.9 in December
2019 from a revised 53.1 in November, with rising production
volumes and new orders.
CEE MARKETS SNAPSHOT AT 1059
CET
CURRENCIES
Latest Previous Daily Change
bid close change in 2020
EURCZK= Czech 25.4050 25.4240 +0.07% +0.11%
crown
EURHUF= Hungary 330.0000 331.1900 +0.36% +0.35%
forint
EURPLN= Polish 4.2575 4.2532 -0.10% -0.03%
zloty
EURRON= Romanian 4.7830 4.7860 +0.06% +0.11%
leu
EURHRK= Croatian 7.4440 7.4414 -0.03% +0.02%
kuna
EURRSD= Serbian 117.4700 117.5700 +0.09% +0.09%
dinar
Note: calculated from 1800
daily CET
change Latest Previous Daily Change
close change in 2020
.PX Prague 1121.22 1115.6300 +0.50% +0.50%
.BUX Budapest 46175.96 46082.82 +0.20% +0.20%
.WIG20 Warsaw 2177.34 2150.09 +1.27% +1.27%
.BETI Bucharest 9977.30 9977.30 +0.00% +0.00%
.SBITOP Ljubljana 926.10 925.86 +0.03% +0.03%
.CRBEX Zagreb 2022.94 2017.43 +0.27% +0.27%
.BELEX15 Belgrade 801.69 801.69 +0.00% +0.00%
.SOFIX Sofia 567.61 568.14 -0.09% -0.09%
BONDS
Yield Yield Spread Daily
(bid) change vs Bund change in
Czech spread
Republic
CZ2YT=RR 2-year 1.7570 0.1790 +235bp +18bps
s
CZ5YT=RR 5-year 1.4720 -0.0650 +194bp -6bps
s
CZ10YT=RR 10-year 1.6640 0.0280 +184bp +2bps
s
Poland
PL2YT=RR 2-year 1.4740 -0.0250 +207bp -3bps
s
PL5YT=RR 5-year 1.8310 0.0250 +230bp +3bps
s
PL10YT=RR 10-year 2.1340 0.0690 +231bp +6bps
s
FORWARD RATE AGREEMENT
3x6 6x9 9x12 3M
interbank
Czech Rep 2.28 2.28 2.26 2.18
Hungary 0.29 0.36 0.41 0.00
Poland 1.74 1.70 1.69 1.71
Note: FRA are for ask prices
quotes
(Reporting by Alan Charlish and Alicja Ptak in Warsaw,
Krisztina Than in Budapest and Jason Hovet in Prague; editing by
Larry King)
Our Standards: The Thomson Reuters Trust Principles.