CEE MARKETS-Markets steady after falls, sentiment still shaky

Credit: REUTERS/Peter Andrews

Central European currencies and stocks steadied on Thursday after falls in the previous session in negative global investor sentiment and on data signalling a slowdown in the eastern region's fast-growing economies.

BUDAPEST, Aug 15 (Reuters) - Central European currencies and stocks steadied on Thursday after falls in the previous session in negative global investor sentiment and on data signalling a slowdown in the eastern region's fast-growing economies.

Polish, Romanian and Croatian markets were closed on Thursday for national holidays.

"The Hungarian stock market closed yesterday'a session with a significant drop, and even though we could see some positive correction this morning we expect a decline in the longer term," brokerage Equilor said in a note.

Signs of Central European economies starting to cool added to negative market sentiment across the region, which has worsened this month amid growing global trade fears.

The Hungarian forint is expected to continue trading in a range between 323 and 326 to the euro, with investors focusing on Friday when two rating agencies -- Fitch and Standard and Poor's -- are expected to review Hungary's credit rating, analysts said.

At 0800 GMT the forint EURHUF= was flat at 325.52 versus the euro.

The Polish zloty EURPLN= fell to a 13-month low on Wednesday.

"The zloty has been under significant pressure over the past few weeks, driven in part by sharp declines in the Polish banking equity index," Morgan Stanley said in a note.

"The slowdown in Germany is also having some impact, with Polish GDP slowing in 2Q this year."

The Polish economy expanded 4.4% year-on-year in the second quarter, down from 4.7% in the previous quarter.

Analysts, though, expect Poland and Hungary - where second-quarter growth eased to 4.9% from a 15-year high of 5.3% - to slow in the coming quarters and next year as the eurozone -- and thus Germany -- slows.

Hungary expects to introduce two more economic stimulus programs next year as growth slows in the European Union, its main trading partner, Prime Minister Viktor Orban said late last month.

Orban's economic policy has focused on maintaining an economic growth rate exceeding the EU average by 2 percentage points. In June, the government announced a first batch of measures, including tax cuts, to boost job creation.

CEE MARKETS

SNAPSHOT

AT 1002 CET

CURRENCIES

Latest

Previous

Daily

Change

bid

close

change

in 2019

Czech crown

EURCZK=

25.9000

25.8700

-0.12%

-0.75%

Hungary forint

EURHUF=

325.5200

325.6300

+0.03%

-1.36%

Polish zloty

EURPLN=

4.3769

4.3745

-0.05%

-1.99%

Romanian leu

EURRON=

4.7265

4.7226

-0.08%

-1.53%

Croatian kuna

EURHRK=

7.3870

7.3873

+0.00%

+0.31%

Serbian dinar

EURRSD=

117.5400

117.7000

+0.14%

+0.65%

Note: daily change

calculated from

1800 CET

Latest

Previous

Daily

Change

close

change

in 2019

Prague

.PX

1032.76

1030.4300

+0.23%

+4.68%

Budapest

.BUX

40110.58

40137.22

-0.07%

+2.48%

Warsaw

.WIG20

2078.39

2078.39

+0.00%

-8.71%

Bucharest

.BETI

9052.10

9052.10

+0.00%

+22.60%

Ljubljana

.SBITOP

862.89

862.89

+0.00%

+7.29%

Zagreb

.CRBEX

1890.63

1890.63

+0.00%

+8.11%

Belgrade

.BELEX15

743.06

745.36

-0.31%

-2.45%

Sofia

.SOFIX

576.96

582.55

-0.96%

-2.94%

BONDS

Yield

Yield

Spread

Daily

(bid)

change

vs Bund

change in

Czech Republic

spread

2-year

CZ2YT=RR

1.1120

0.1050

+199bps

+11bps

5-year

CZ5YT=RR

0.7540

0.0340

+164bps

+3bps

10-year

CZ10YT=RR

0.9020

-0.0090

+155bps

-1bps

Poland

2-year

PL2YT=RR

1.5060

-0.0050

+238bps

+0bps

5-year

PL5YT=RR

1.6250

-0.0030

+251bps

+0bps

10-year

PL10YT=RR

1.7590

-0.0010

+241bps

+0bps

FORWARD

RATE

AGREEMENT

3x6

6x9

9x12

3M interbank

Czech Rep

CZKFRAPRIBOR=

1.98

1.79

1.53

2.14

Hungary

HUFFRABUBOR=

0.28

0.28

0.32

0.26

Poland

PLNFRAWIBOR=

1.69

1.61

1.55

1.72

Note: FRA quotes

are for ask prices

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

(Reporting by Krisztina Than, Editing by Angus MacSwan)

((krisztina.than@thomsonreuters.com))

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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