BUCHAREST, Nov 27 (Reuters) - Central European stocks rose
in tandem with other European markets on Wednesday, bolstered by
hopes for a U.S.-China trade deal, while the Hungarian forint
eased off a record low reached on Tuesday.
U.S. President Donald Trump said on Tuesday the United
States and China were close to agreement on the first phase of a
trade deal and that Washington was in the "final throes" of work
that would defuse a 16-month trade war with Beijing.
By 1010 GMT, Bucharest's blue-chip index led the
region, up 0.6% on the day. Prague's was up 0.4% while
Budapest's and Warsaw's were up 0.2% and 0.1%
respectively.
The Hungarian forint was 0.1% stronger versus the
euro on the day at 335.9500, off a record low of 336.95 hit on
Tuesday. It remains the region's worst performer, having lost
4.5% this year, and analysts said loose monetary policy despite
rising core inflation would continue to put downward pressure.
"We trace the underperformance of the forint to overshooting
inflation," Commerzbank said in a daily note.
"We view the latest EUR-HUF move to be an extension of the
trend already underway because of this rising core inflation
trend. (The central bank's) unconditional dovish stance is
making the FX market increasingly uneasy."
Elsewhere in the region, the Czech crown and
Polish zloty were each down 0.1% against the euro.
The Romanian leu was flat, but fiscal slippage and
rising budget and current account deficits will continue to put
pressure on assets.
The finance ministry aims to sell 200 million euros of
December 2023 bonds later on Wednesday. Markets expect the
finance ministry to ramp up debt sales to plug the budget
deficit.
"In our view, the market remains fairly complacent on the
increased budget gap news, as yields are probably at attractive
enough levels to keep buying interest alive," ING Bank Romania
said in a note.
CEE SNAPSHO AT
MARKETS T 1121
CET
CURRENC
IES
Latest Previou Daily Change
s
bid close change in 2019
Czech <EURCZK= 25.5170 25.4980 -0.07% +0.74%
crown >
Hungary <EURHUF= 336.050 336.110 +0.02% -4.45%
forint > 0 0
Polish <EURPLN= 4.3077 4.3046 -0.07% -0.42%
zloty >
Romanian <EURRON= 4.7790 4.7805 +0.03% -2.62%
leu >
Croatian <EURHRK= 7.4380 7.4333 -0.06% -0.38%
kuna >
Serbian <EURRSD= 117.480 117.640 +0.14% +0.70%
dinar > 0 0
Note: calculated from 1800
daily CET
change
Latest Previou Daily Change
s
close change in 2019
Prague 1084.78 1079.01 +0.53% +9.96%
00
Budapest 43888.3 43781.9 +0.24% +12.13
8 6 %
Warsaw 2191.48 2190.58 +0.04% -3.74%
Bucharest 9859.52 9797.21 +0.64% +33.53
%
Ljubljana <.SBITOP 897.78 897.51 +0.03% +11.63
> %
Zagreb 1991.59 1994.43 -0.14% +13.88
%
Belgrade <.BELEX1 767.73 765.72 +0.26% +0.79%
5>
Sofia 542.55 545.79 -0.59% -8.73%
BONDS
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
2-year <CZ2YT=R 1.4430 -0.0250 +208bp -3bps
R> s
5-year <CZ5YT=R 1.2150 -0.0370 +183bp -4bps
R> s
10-year <CZ10YT= 1.4600 -0.0230 +184bp -2bps
RR> s
Poland
2-year <PL2YT=R 1.3740 -0.0090 +201bp -1bps
R> s
5-year <PL5YT=R 1.7400 0.0030 +235bp +0bps
R> s
10-year <PL10YT= 1.9970 0.0060 +237bp +1bps
RR> s
FORWARD RATE AGREEME
NT
3x6 6x9 9x12 3M
interba
nk
Czech Rep 2.23 2.23 2.16 2.18
<PRIBOR=
>
Hungary 0.23 0.24 0.28 0.17
Poland 1.73 1.70 1.66 1.71
Note: FRA are for ask
quotes prices
**********************************************
****************
(Reporting by Luiza Ilie in Bucharest and Jason Hovet in
Prague; editing by Larry King)
