CEE MARKETS-CEE FX slides marginally, stocks down on fresh U.S. trade woes

Credit: REUTERS/Peter Andrews

Central European currencies mostly slid marginally in thin trade on Tuesday while stocks eased mirroring emerging assets with investors wary of fallout from a new U.S. trade conflict with Latin American export heavyweights.

By Radu-Sorin Marinas

BUCHAREST, Dec 3 (Reuters) - Central European currencies mostly slid marginally in thin trade on Tuesday while stocks eased mirroring emerging assets with investors wary of fallout from a new U.S. trade conflict with Latin American export heavyweights.

As trade frictions with China already roil markets, Washington said it would restore tariffs on metal imports from Brazil and Argentina.

In Central Europe, Warsaw's WIG 20 .WIG20 led regional losses, down 0.5% on the day, with Poland's second largest lender, Pekao PEO.WA, falling 1.7% to 98.06 zloty by 1000 GMT.

Acting Pekao CEO Marek Lusztyn told Polish business daily Parkiet on Tuesday the bank will continue with its outlined strategy after the unexpected resignation of former CEO Michal Krupinski on Friday.

Budapest's market .BUX eased 0.4% on the day, followed by Prague .PX down 0.3% and Bucharest .BETI 0.1%.

Players said all eyes will be on this week's monetary policy council in Poland, seen keeping interest rates unchanged.

"The assumption about interest rate stabilization (as in minutes) will probably be repeated," PKO BP analysts said in a note.

"Despite inflation above the NBP target, the market is pricing in interest rate cuts over the next two years, which is influenced by the actions of major central banks as well as the slowdown in the global economy, with recent GDP data also showing signs of a slowdown in Poland."

By 1010 GMT, the Polish zloty EURPLN= led losses with a 0.2% fall, followed by the Romanian leu EURRON= and the Czech crown with 0.1% slide each. The Hungarian forint EURHUF= was flat at 332.2 to the euro.

CEE MARKETS

SNAPSHOT

AT 1100 CET

CURRENCIES

Latest

Previous

Daily

Change

bid

close

change

in 2019

Czech crown

EURCZK=

25.5500

25.5460

-0.02%

+0.61%

Hungary forint

EURHUF=

332.1500

332.2000

+0.02%

-3.33%

Polish zloty

EURPLN=

4.2881

4.2831

-0.12%

+0.03%

Romanian leu

EURRON=

4.7780

4.7760

-0.04%

-2.60%

Croatian kuna

EURHRK=

7.4347

7.4375

+0.04%

-0.33%

Serbian dinar

EURRSD=

117.4500

117.4900

+0.03%

+0.72%

Note: daily change

calculated from

1800 CET

Latest

Previous

Daily

Change

close

change

in 2019

Prague

.PX

1080.05

1081.6900

-0.15%

+9.48%

Budapest

.BUX

43167.22

43370.30

-0.47%

+10.29%

Warsaw

.WIG20

2115.98

2122.30

-0.30%

-7.06%

Bucharest

.BETI

9902.09

9903.07

-0.01%

+34.11%

Ljubljana

.SBITOP

898.67

898.96

-0.03%

+11.74%

Zagreb

.CRBEX

2003.45

2002.18

+0.06%

+14.56%

Belgrade

.BELEX15

771.92

770.93

+0.13%

+1.34%

Sofia

.SOFIX

544.05

547.82

-0.69%

-8.48%

BONDS

Yield

Yield

Spread

Daily

(bid)

change

vs Bund

change in

Czech Republic

spread

2-year

CZ2YT=RR

1.5250

0.0240

+215bps

+3bps

5-year

CZ5YT=RR

1.2870

0.0570

+185bps

+7bps

10-year

CZ10YT=RR

1.5000

0.0060

+179bps

+1bps

Poland

2-year

PL2YT=RR

1.3990

-0.0010

+202bps

+1bps

5-year

PL5YT=RR

1.7440

-0.0190

+230bps

-1bps

10-year

PL10YT=RR

2.0430

0.0250

+233bps

+3bps

FORWARD

RATE

AGREEMENT

3x6

6x9

9x12

3M interbank

Czech Rep

CZKFRAPRIBOR=

2.24

2.24

2.15

2.18

Hungary

HUFFRABUBOR=

0.27

0.31

0.35

0.17

Poland

PLNFRAWIBOR=

1.73

1.70

1.64

1.71

Note: FRA quotes

are for ask prices

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

(Reporting by Radu Marinas; Editing by Andrew Cawthorne)

((radu.marinas@thomsonreuters.com; +40 21 527 04 33; Reuters Messaging: radu.marinas.thomsonreuters.com@reuters.net))

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

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