CDR

CEE MARKETS-Stocks retreat, FX drifts sideways with ECB eyed

Credit: REUTERS/Peter Andrews

Central European stocks mostly gave up gains from the previous session on Thursday while currencies eased a touch, with markets caught between global worries over U.S.-China trade and awaiting cues from an ECB meeting.

PRAGUE, July 16 (Reuters) - Central European stocks mostly gave up gains from the previous session on Thursday while currencies eased a touch, with markets caught between global worries over U.S.-China trade and awaiting cues from an ECB meeting.

Warsaw stocks .WIG20 fell half a percent and Budapest .BUX was down 0.3%, although a rise in Czech utility CEZ CEZP.PR helped buoy Prague .PX.

Currencies for the most part traded sideways after gaining some momentum this week.

The Polish zloty EURPLN= eased 0.3% and the Czech crown EURCZK= was down a touch at 26.678 to the euro at 0836 GMT after matching its July high of 25.575 on Wednesday.

Hungary's forint EURHUF= was flat at 353.91.

"The Hungarian currency has been stuck in a more and more narrow range," Equilor said. "Bigger moves could start in the FX market in the afternoon as the European Central Bank has its rate meeting later today."

Central European rate setters have eased policy to counter the harsh economic impact of the COVID-19 pandemic but are mostly seen taking a pause, especially with inflation remaining elevated.

The ECB, after extraordinary moves, is also all but certain to keep policy on hold on Thursday.

Risk appetite took a hit due to worries about a wide-ranging dispute between the United States and China over the control of advanced technologies and the protection of civil liberties in Hong Kong. A growing number of coronavirus cases in parts of the world was also giving investors pause.

On bond markets, the Czechs were offering Treasury bills following the sale of a rare euro-denominated bond on Wednesday that drew bids of over 1 billion euros for the offer of 300 million.

Hungary and Romania will also hold sales.

"While Hungary issues its plain-vanilla benchmark bonds, likely attracting healthy demand anew, Romania comes with a 2025 (state bond)," Raiffeisen said. "The latter was well bid at previous auctions and we expect this to repeat today."

CEE MARKETS

SNAPSHOT

AT 1036 CET

CURRENCIES

Latest

Previous

Daily

Change

bid

close

change

in 2020

EURCZK=

Czech crown

EURCZK=

26.6780

26.6685

-0.04%

-4.67%

EURHUF=

Hungary forint

EURHUF=

353.9100

353.9100

+0.00%

-6.43%

EURPLN=

Polish zloty

EURPLN=

4.4860

4.4743

-0.26%

-5.12%

EURRON=

Romanian leu

EURRON=

4.8430

4.8445

+0.03%

-1.13%

EURHRK=

Croatian kuna

EURHRK=

7.5320

7.5323

+0.00%

-1.15%

EURRSD=

Serbian dinar

EURRSD=

117.5800

117.6200

+0.03%

-0.01%

Note: daily change

calculated from

1800 CET

STOCKS

Latest

Previous

Daily

Change

close

change

in 2020

.PX

Prague

.PX

949.63

948.1100

+0.16%

-14.88%

.BUX

Budapest

.BUX

35268.72

35371.88

-0.29%

-23.47%

.WIG20

Warsaw

.WIG20

1786.17

1794.78

-0.48%

-16.93%

.BETI

Bucharest

.BETI

8475.79

8439.27

+0.43%

-15.05%

.SBITOP

Ljubljana

.SBITOP

866.40

870.67

-0.49%

-6.42%

.CRBEX

Zagreb

.CRBEX

1608.03

1607.57

+0.03%

-20.29%

.BELEX15

Belgrade

.BELEX15

658.24

655.53

+0.41%

-17.89%

.SOFIX

Sofia

.SOFIX

442.45

442.17

+0.06%

-22.12%

BONDS

Yield

Yield

Spread

Daily

(bid)

change

vs Bund

change in

Czech Republic

spread

CZ2YT=RR

2-year

CZ2YT=RR

0.2000

0.0960

+087bps

+10bps

CZ5YT=RR

5-year

CZ5YT=RR

0.4800

0.0270

+113bps

+4bps

CZ10YT=RR

10-year

CZ10YT=RR

0.9360

0.0560

+139bps

+6bps

Poland

PL2YT=RR

2-year

PL2YT=RR

0.1220

-0.0120

+079bps

-1bps

PL5YT=RR

5-year

PL5YT=RR

0.7710

-0.0400

+142bps

-3bps

PL10YT=RR

10-year

PL10YT=RR

1.3470

-0.0150

+180bps

-1bps

FRA

3x6

6x9

9x12

3M interbank

Czech Rep

CZKFRAPRIBOR=

0.34

0.35

0.36

0.34

Hungary

HUFFRABUBOR=

0.68

0.68

0.67

0.70

Poland

PLNFRAWIBOR=

0.20

0.22

0.22

0.25

Note: FRA quotes are for ask prices

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

(Reporting by Jason Hovet in Prague, Anita Komuves in Budapest; Editing by Shailesh Kuber)

((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.

In This Story

CDR MRNA

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