CEE MARKETS-Stocks pull higher, FX steadies as COVID cases rise further

Credit: REUTERS/Bernadett Szabo

Czech and Polish stock markets rose off multi-month lows on Friday and followed European peers higher, while currencies edged higher after recent weakening amid a spike in new coronavirus cases.

PRAGUE, Oct 23 (Reuters) - Czech and Polish stock markets rose off multi-month lows on Friday and followed European peers higher, while currencies edged higher after recent weakening amid a spike in new coronavirus cases.

Warsaw's blue-chip stock index .WIG20 rose 0.6% a day after approaching its five-month low hit earlier in the week. Prague .PX was up a similar amount, coming off lows last seen in April. Budapest .BUX was closed for a holiday.

Shares rose as European stocks pushed higher for their best day in five sessions. Investors were still eyeing the approaching U.S. presidential vote in early November and the coronavirus pandemic.

Poland and Slovakia reported their highest daily tallies of new COVID-19 cases on Friday and the Czechs had their second- highest single-day count a day after also touching a record.

Restrictions are tightening around central Europe to counter the spread, with the Czech Republic shutting shops and restaurants as it fights what is Europe's highest per-capita infection rate in recent weeks.

The Czech crown EURCZK= was up 0.1% at 27.15 to the euro at 1016 GMT. It fell to a nearly five-month low of 27.465 last week.

"I don't think to there is a good chance for a stronger crown in the coming days," a trader said.

While the tighter restrictions will again hammer fourth-quarter economic activity - although probably less than at the start of the pandemic in the second quarter - Czech central bankers have signalled rate stability.

Board member Vojtech Benda told Czech TV on Thursday there was no need to cut interest rates further at the moment.

Elsewhere, the Polish zloty EURPLN= rose less than 0.1% to 4.574 per euro and the Romanian leu EURRON= dipped to 4.876. Hungary's forint EURHUF= gained nearly 0.2%.

CEE MARKETS

SNAPSHOT

AT 1216 CET

CURRENCIES

Latest

Previous

Daily

Change

bid

close

change

in 2020

EURCZK=

Czech crown

EURCZK=

27.1500

27.1800

+0.11%

-6.33%

EURHUF=

Hungary forint

EURHUF=

363.7700

364.3450

+0.16%

-8.97%

EURPLN=

Polish zloty

EURPLN=

4.5740

4.5766

+0.06%

-6.94%

EURRON=

Romanian leu

EURRON=

4.8760

4.8738

-0.05%

-1.80%

EURHRK=

Croatian kuna

EURHRK=

7.5770

7.5775

+0.01%

-1.74%

EURRSD=

Serbian dinar

EURRSD=

117.5000

117.6000

+0.09%

+0.06%

Note: daily change

calculated from

1800 CET

STOCKS

Latest

Previous

Daily

Change

close

change

in 2020

.PX

Prague

.PX

862.75

857.8200

+0.57%

-22.67%

.BUX

Budapest

.BUX

33655.10

33655.10

+0.00%

-26.97%

.WIG20

Warsaw

.WIG20

1652.16

1642.70

+0.58%

-23.16%

.BETI

Bucharest

.BETI

8795.60

8756.94

+0.44%

-11.84%

.SBITOP

Ljubljana

.SBITOP

825.95

831.60

-0.68%

-10.79%

.CRBEX

Zagreb

.CRBEX

1605.24

1602.37

+0.18%

-20.43%

.BELEX15

Belgrade

.BELEX15

696.25

691.57

+0.68%

-13.15%

.SOFIX

Sofia

.SOFIX

429.52

429.66

-0.03%

-24.40%

BONDS

Yield

Yield

Spread

Daily

(bid)

change

vs Bund

change in

Czech Republic

spread

CZ2YT=RR

2-year

CZ2YT=RR

0.0860

0.0190

+085bps

+2bps

CZ5YT=RR

5-year

CZ5YT=RR

0.5900

-0.0010

+136bps

+0bps

CZ10YT=RR

10-year

CZ10YT=RR

1.0240

-0.0110

+159bps

-2bps

Poland

PL2YT=RR

2-year

PL2YT=RR

0.0020

-0.0020

+077bps

-1bps

PL5YT=RR

5-year

PL5YT=RR

0.4890

-0.0230

+126bps

-3bps

PL10YT=RR

10-year

PL10YT=RR

1.2430

-0.0150

+181bps

-2bps

FRA

3x6

6x9

9x12

3M interbank

Czech Rep

CZKFRAPRIBOR=

0.28

0.25

0.28

0.35

Hungary

HUFFRABUBOR=

0.93

0.98

1.00

0.77

Poland

PLNFRAWIBOR=

0.17

0.17

0.16

0.22

Note: FRA quotes are for ask prices

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

(Reporting by Jason Hovet, Editing by William Maclean)

((jason.hovet@thomsonreuters.com; +420 234 721 613;))

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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