CEE MARKETS-CEE currencies, shares down on lockdown fears

Credit: REUTERS/David W Cerny

The Polish zloty and Hungarian forint fell to their weakest levels since the first wave of the new coronavirus pandemic on Wednesday and Central European stocks tumbled as governments weighed tightening restrictions against to fight the virus.

By 0940 GMT, the Polish zloty EURPLN= fell 0.7% on the day to 4.6145, its lowest since late-March as the country reported a record 18,820 new coronavirus infections and 236 deaths on Wednesday, facing hospitals overload while mass street protests against an abortion ruling continue.

"Should the situation deteriorate further, more restrictions, including lockdown like in the second quarter, cannot be excluded," Raiffeisen said in a daily note.

"Simultaneously to the deteriorating pandemic Poland is observing increasing political tensions with countrywide protests in response to an extended ban on abortion released last week."

The Hungarian forint EURHUF= fell 0.5% on the day to 367.1000, its lowest level since early April.

The Hungarian government has tightened rules on wearing mask in shops, events and public transport, but has so far refrained from imposing more severe restrictions as it is trying to limit the economic fallout.

"The forint continues to hover around critical levels. It is increasingly likely that it will try to break the resistance at 366.40 to the euro soon," brokerage Equilor said in a note.

Elsewhere in the region, the Romanian leu EURRON= was flat against the euro. A widening budget deficit kept Romanian assets under pressure, but a successful euro-denominated domestic debt tender on Tuesday gave the finance ministry some breathing room, analysts said.

A potential new national lockdown in France and tighter curbs elsewhere in Europe have rattled investors struggling to gauge the impact on fourth-quarter economic activity.

By 0940 GMT, Warsaw's blue chip index .WIG20 led losses, down 1.8% on the day. Stocks in Budapest .BUX and Bucharest .BETI fell 1.4% and 1.0%, respectively. Czech markets were closed for a public holiday.

CEE MARKETS

SNAPSHOT

AT 1102 CET

CURRENCIES

Latest

Previous

Daily

Change

bid

close

change

in 2020

Czech crown

EURCZK=

27.4300

27.3000

-0.47%

-7.28%

Hungary forint

EURHUF=

367.1000

365.2200

-0.51%

-9.79%

Polish zloty

EURPLN=

4.6165

4.5817

-0.75%

-7.80%

Romanian leu

EURRON=

4.8755

4.8757

+0.00%

-1.79%

Croatian kuna

EURHRK=

7.5750

7.5775

+0.03%

-1.71%

Serbian dinar

EURRSD=

117.6300

117.6000

-0.03%

-0.05%

Note: daily change

calculated from

1800 CET

Latest

Previous

Daily

Change

close

change

in 2020

Prague

.PX

865.12

865.1200

+0.00%

-22.45%

Budapest

.BUX

32526.95

32992.69

-1.41%

-29.42%

Warsaw

.WIG20

1591.89

1625.54

-2.07%

-25.96%

Bucharest

.BETI

8693.84

8784.14

-1.03%

-12.86%

Ljubljana

.SBITOP

805.77

805.56

+0.03%

-12.97%

Zagreb

.CRBEX

1592.95

1591.64

+0.08%

-21.04%

Belgrade

.BELEX15

690.16

697.08

-0.99%

-13.91%

Sofia

.SOFIX

424.96

426.40

-0.34%

-25.20%

Yield

Yield

Spread

Daily

(bid)

change

vs Bund

change in

Czech Republic

spread

2-year

CZ2YT=RR

-0.0430

-0.0850

+074bps

-7bps

5-year

CZ5YT=RR

0.5810

-0.0120

+140bps

+1bps

10-year

CZ10YT=RR

1.0020

-0.0400

+164bps

-1bps

Poland

2-year

PL2YT=RR

-0.0110

-0.0140

+077bps

+0bps

5-year

PL5YT=RR

0.4100

-0.0200

+123bps

+0bps

10-year

PL10YT=RR

1.1500

-0.0240

+179bps

+1bps

FORWARD

3x6

6x9

9x12

3M interbank

Czech Rep

CZKFRAPRIBOR=

0.27

0.23

0.25

0.35

Hungary

HUFFRABUBOR=

0.93

0.96

0.99

0.77

Poland

PLNFRAWIBOR=

0.18

0.15

0.13

0.22

Note: FRA quotes

are for ask prices

**************************************************************

(Reporting by Luiza Ilie in Bucharest and Krisztina Than in Budapest; Editing by Tomasz Janowski)

((luiza.ilie@thomsonreuters.com; +4021 527 0312; https://www.reuters.com/journalists/luiza-ilie))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More