Credit: REUTERS/DAVID W CERNYBy 0940 GMT Bucharest's blue chip index .BETI was down 0.3%. Warsaw's main index .WIG20 fell 0.2%, while Budapest .BUX and Prague .PX shares were up 0.4% and 0.3%, respectively.
Currencies were flat against the euro as investors braced for an interest rate cut by the Federal Reserve and clues on its policy outlook.
Monetary policy loosening by the world's largest central banks has so far eased pressure to act on policymakers in central Europe, where consumption-driven economic growth has mostly held up in the face of a euro zone slowdown and concerns over Britain's now further delayed exit from the European Union.
"In general, the dovish global central bank backdrop increases the degrees of freedom for CEE central banks to keep rates low for longer," Raiffeisen Bank said in a research note.
Policymakers in the region have kept rates on hold, but in the Czech Republic some board members have spoken in favour of hikes.
Analysts said the crown EURCZK= will be without any strong direction until next week's central bank meeting where policymakers are likely to debate potential rate hikes. In September the board voted 5-2 for stable rates, with two votes for a hike.
In Romania, the leu was unfazed by the rejection on Tuesday of finance ministry nominee Florin Citu by parliament's joint budget and finance committees, whose decision is not binding.
Citu's centrist National Liberal Party aims to win a parliamentary vote of confidence on Nov. 4, to replace the outgoing Social Democrat government, ousted in a parliamentary vote of no-confidence earlier this month.
The finance ministry is expected to release domestic debt issuance plans for November, as well as budget data for September. The widening of the country's budget and current account deficits have weighed on assets.
"We expect intensifying pressure in terms of sovereign financing costs in the short-run due to the weakening stance of the public finance," BT Capital Partners said in a research note.
CEE MARKETS
SNAPSHOT
AT 1100 CET
CURRENCIES
Latest
Previous
Daily
Change
bid
close
change
in 2019
Czech crown
EURCZK=
25.5280
25.5470
+0.07%
+0.70%
Hungary forint
EURHUF=
329.8000
329.9000
+0.03%
-2.64%
Polish zloty
EURPLN=
4.2660
4.2635
-0.06%
+0.55%
Romanian leu
EURRON=
4.7570
4.7560
-0.02%
-2.17%
Croatian kuna
EURHRK=
7.4670
7.4555
-0.15%
-0.76%
Serbian dinar
EURRSD=
117.5400
117.4200
-0.10%
+0.65%
Note: daily change
calculated from
1800 CET
Latest
Previous
Daily
Change
close
change
in 2019
Prague
.PX
1064.55
1062.1800
+0.22%
+7.91%
Budapest
.BUX
42561.14
42453.16
+0.25%
+8.74%
Warsaw
.WIG20
2225.18
2227.93
-0.12%
-2.26%
Bucharest
.BETI
9687.70
9713.66
-0.27%
+31.20%
Ljubljana
.SBITOP
858.18
854.19
+0.47%
+6.70%
Zagreb
.CRBEX
2010.81
2017.10
-0.31%
+14.98%
Belgrade
.BELEX15
749.93
749.57
+0.05%
-1.54%
Sofia
.SOFIX
555.98
556.28
-0.05%
-6.47%
BONDS
Yield
Yield
Spread
Daily
(bid)
change
vs Bund
change in
Czech Republic
spread
2-year
CZ2YT=RR
1.3060
0.0680
+194bps
+6bps
5-year
CZ5YT=RR
1.1200
-0.0170
+172bps
-2bps
10-year
CZ10YT=RR
1.3800
-0.0040
+174bps
-1bps
Poland
2-year
PL2YT=RR
1.4510
-0.0200
+209bps
-2bps
5-year
PL5YT=RR
1.7530
0.0070
+236bps
+1bps
10-year
PL10YT=RR
2.0170
0.0090
+237bps
+1bps
FORWARD
RATE
AGREEMENT
3x6
6x9
9x12
3M interbank
Czech Rep
CZKFRAPRIBOR=
2.24
2.22
2.15
2.18
Hungary
HUFFRABUBOR=
0.27
0.33
0.37
0.20
Poland
PLNFRAWIBOR=
1.74
1.71
1.68
1.71
Note: FRA quotes
are for ask prices
**************************************************************
(Reporting by Luiza Ilie in Bucharest, Alan Charlish in Warsaw and Jason Hovet in Prague; Editing by Emelia Sithole-Matarise)
((luiza.ilie@thomsonreuters.com; +4021 527 0312; Reuters Messaging: luiza.ilie.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.
