CEE MARKETS-Stocks, currencies fall as rising virus cases weigh

Credit: REUTERS/DAVID W CERNY

Most Central European stock markets and currencies slid on Friday, as rising coronavirus cases both globally and in the region, with Hungary and the Czech Republic reporting record numbers of new infections, weighed on investor sentiment.

By Anita Komuves

BUDAPEST, Sept 18 (Reuters) - Most Central European stock markets and currencies slid on Friday, as rising coronavirus cases both globally and in the region, with Hungary and the Czech Republic reporting record numbers of new infections, weighed on investor sentiment.

Instead of lockdowns earlier that led to massive economic contractions, governments in the region are tightening mask-wearing rules and curtailing opening hours of bars and restaurants.

The Czech Republic reported more than 3,000 cases in a single day on Friday. The country has seen one of the biggest spikes in new coronavirus infections in Europe.

Hungary also reported its highest ever daily tally of 941 infections.

Meanwhile, the crown EURCZK=, under pressure from pandemic worries in recent days, firmed 0.21% and was trading at 26.675 versus the common currency, as it was getting some technical bounce from recent lows hit earlier this week.

The forint EURHUF= slid 0.15% to 360.95 per euro as markets were also eyeing the central bank's rate-setting meeting next Tuesday when it will also publish its next inflation report.

The NBH is likely to leave interest rates unchanged at 0.6%, a Reuters poll of economists said.

"The market could be paying special attention to how the NBH's communication reacts to higher-than-expected inflation data," CIB Bank said in a note.

"The central bank will have to walk a fine line between keeping the credibility of the inflation target, protecting the forint and supporting the economy."

Hungary's central bank announced the details of its first euro/forint foreign exchange swap tender providing euro liquidity on Friday. The measure was announced earlier this month in order to reduce volatility in the domestic forex swap market.

Elsewhere, the Romanian leu EURRON= was little moved and the Polish zloty EURPLN= edged down 0.07% at 4.4555 per euro.

Most stocks in the region were down, with Budapest .BUX leading losses as it weakened 0.57%. Prague .PX lost 0.42% and Warsaw .WIG20 was down 0.22%. Bucharest .BETI bucked the trend and was up 0.27%.

CEE MARKETS

SNAPSHOT

AT 1057 CET

CURRENCIES

Latest

Previous

Daily

Change

bid

close

change

in 2020

EURCZK=

Czech crown

EURCZK=

26.6750

26.7300

+0.21%

-4.66%

EURHUF=

Hungary forint

EURHUF=

360.9500

360.4200

-0.15%

-8.26%

EURPLN=

Polish zloty

EURPLN=

4.4555

4.4525

-0.07%

-4.47%

EURRON=

Romanian leu

EURRON=

4.8595

4.8592

-0.01%

-1.47%

EURHRK=

Croatian kuna

EURHRK=

7.5380

7.5413

+0.04%

-1.23%

EURRSD=

Serbian dinar

EURRSD=

117.5900

117.5800

-0.01%

-0.02%

Note: daily change

calculated from

1800 CET

Latest

Previous

Daily

Change

close

change

in 2020

.PX

Prague

.PX

879.88

883.6300

-0.42%

-21.13%

.BUX

Budapest

.BUX

33694.66

33886.79

-0.57%

-26.88%

.WIG20

Warsaw

.WIG20

1741.86

1745.73

-0.22%

-18.99%

.BETI

Bucharest

.BETI

9235.59

9210.62

+0.27%

-7.43%

.SBITOP

Ljubljana

.SBITOP

842.07

839.82

+0.27%

-9.05%

.CRBEX

Zagreb

.CRBEX

1611.71

1610.57

+0.07%

-20.11%

.BELEX15

Belgrade

.BELEX15

683.81

689.21

-0.78%

-14.70%

.SOFIX

Sofia

.SOFIX

429.89

429.60

+0.07%

-24.33%

Yield

Yield

Spread

Daily

(bid)

change

vs Bund

change in

Czech Republic

spread

CZ2YT=RR

2-year

CZ2YT=RR

0.1660

-0.0440

+086bps

-4bps

CZ5YT=RR

5-year

CZ5YT=RR

0.5840

-0.0670

+128bps

-7bps

CZ10YT=RR

10-year

CZ10YT=RR

0.9620

-0.0620

+145bps

-6bps

Poland

PL2YT=RR

2-year

PL2YT=RR

0.0450

-0.0190

+074bps

-2bps

PL5YT=RR

5-year

PL5YT=RR

0.6720

-0.0210

+136bps

-2bps

PL10YT=RR

10-year

PL10YT=RR

1.3640

-0.0070

+185bps

-1bps

FORWARD

3x6

6x9

9x12

3M interbank

Czech Rep

CZKFRAPRIBOR=

0.35

0.35

0.39

0.34

Hungary

HUFFRABUBOR=

0.75

0.79

0.84

0.63

Poland

PLNFRAWIBOR=

0.22

0.20

0.20

0.23

Note: FRA quotes

are for ask prices

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

(Additional reporting by Jason Hovet in Prague; Editing by Rashmi Aich)

((komuves.anita@thomsonreuters.com (+36 70 795 8815))

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