FX lose ground against main reference euro currency
Currencies at multi-year lows against dollar
Stocks lose, Warsaw snaps winning streak sparked by low
Czech O2 shares gain as buyback news boosts support
PRAGUE, Sept 3 (Reuters) - Central European currencies touched new lows against the dollar and edged lower against the euro on Tuesday, while stock markets also fell as Brexit cast a shadow over economic bright spots.
Economies in the region have outpaced the euro zone and manufacturing surveys showing slight improvements on Monday had boosted markets.
But the export-reliant region is expected to slow in the coming quarters over uncertainties ranging from global trade tensions to a potential disorderly British exit from the European Union.
The latter could hurt the region by damaging trade both directly with Britain and, more importantly, indirectly as suppliers to bigger economies like Germany that count on the British market for exports.
On Tuesday, British lawmakers prepared to vote on the first stage of a plan to block Prime Minister Boris Johnson from pursuing a no-deal Brexit, fuelling market jitters.
A sharply falling euro - the region's main reference currency - against the dollar translated into further losses for Central European currencies against the U.S. currency, with the Hungarian forint HUF= hitting an 18-year low of 302.99 to the dollar.
The Czech crown EURCZK= and Polish zloty PLN= were also at more than two-year lows against the dollar.
Versus the euro, the zloty EURPLN= fell 0.1% to 4.365 to lead losses, while the forint EURHUF= and the crown EURCZK= ticked lower after slight gains on Monday.
"The crown is still under pressure because of uncertainty connected to Brexit," Czech bank CSOB said. It added industry and retail data this week could help buoy the currency.
Czech wage data on Tuesday showed still strong growth, rising a real 4.3% and nominal 7.2%, above forecasts.
Analysts said this was another reason the central bank - which halted a tightening cycle in May just as global central banks shifted to an easing bias - would remain in wait-and-see mode with rates.
Investors are also focused on the European Central Bank's meeting next week, expecting policymakers to loosen monetary policy.
"Until then, trading volatility may be limited," Poland's Bank Millennium said.
In stock markets, Warsaw's blue-chip index .WIG20 lost 1.9%, snapping a three-day win streak that started after it touched a 2-1/2 year low last week.
Telecom group O2 Czech Republic SPTT.PR rose up to 1%, gaining for a second straight session after news the company was again in the market last week as part of a buyback programme, making its first purchases since the end of 2017.
Its shares have traded since June at their lowest since 2016.
CEE MARKETSSNAPSHOTAT 1059 CETCURRENCIESLatest Previous Daily Change bid close change in 2019 EURCZK=Czech crown EURCZK= 25.900025.8910-0.03%-0.75%EURHUF=Hungary forint EURHUF= 331.1000331.0500-0.02%-3.02%EURPLN=Polish zloty EURPLN= 4.36544.3609-0.10%-1.74%EURRON=Romanian leu EURRON= 4.72484.7243-0.01%-1.50%EURHRK=Croatian kuna EURHRK= 7.40507.4030-0.03%+0.07%EURRSD=Serbian dinar EURRSD= 117.4500117.5100+0.05%+0.72%Note: daily change calculated from 1800 CETLatest Previous Daily Change close change in 2019 .PXPrague .PX 1031.501036.4500-0.48%+4.56%.BUXBudapest .BUX 39181.1039707.43-1.33%+0.11%.WIG20Warsaw .WIG20 2103.822144.48-1.90%-7.59%.BETIBucharest .BETI 9248.599259.73-0.12%+25.26%.SBITOPLjubljana .SBITOP 852.68850.37+0.27%+6.02%.CRBEXZagreb .CRBEX 1865.111865.99-0.05%+6.65%.BELEX15Belgrade .BELEX15 742.80746.36-0.48%-2.48%.SOFIXSofia .SOFIX 568.97569.92-0.17%-4.29%BONDSYield Yield Spread Daily (bid) change vs Bund change in Czech Republic spread CZ2YT=RR2-year CZ2YT=RR 1.14300.0300+207bps +4bps CZ5YT=RR5-year CZ5YT=RR 0.85400.0060+182bps +2bps CZ10YT=RR10-year CZ10YT=RR 1.0390-0.0210+177bps +1bps Poland PL2YT=RR2-year PL2YT=RR 1.5410-0.0210+247bps -1bps PL5YT=RR5-year PL5YT=RR 1.6440-0.0620+261bps -5bps PL10YT=RR10-year PL10YT=RR 1.8100-0.0440+255bps -1bps FORWARDRATEAGREEMENT3x6 6x9 9x12 3M interbank Czech Rep CZKFRAPRIBOR= 2.081.911.752.14Hungary HUFFRABUBOR= 0.310.310.320.00Poland PLNFRAWIBOR= 1.741.691.621.72Note: FRA quotes are for ask prices **************************************************************(Reporting by Jason Hovet in Prague, Krisztina Than in Budapest and Alan Charlish and Agnieszka Barteczko in Warsaw; Editing by Alexander Smith) |
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