CEE MARKETS-Currencies stable, stocks mixed ahead of Polish cenbank decision


By Anita Komuves

BUDAPEST, Oct 7 (Reuters)Central European currencies held stable on Wednesday, having briefly weakened after U.S. President Donald Trump’s announcement on Tuesday that negotiations about a new fiscal stimulus would stop until after the Nov. 3 election.

The announcement led to larger moves on the FX market Tuesday evening, Equilor wrote in a note.

Some emerging currencies, including the Hungarian forint, weakened as the announcement led to a risk-off mood and a strengthening of the dollar, they added.

The sour mood was replaced on Wednesday by optimism a stimulus package would be introduced after the election.

The forint EURHUF= was up 0.1% on Wednesday, trading at 359.450 versus the common currency.

Investors were also eyeing the Polish central bank’s rate decision later today. All 16 analysts polled by Reuters expect the key interest rate to remain on hold at a record low of 0.1%.

Poland’s central bank has cut the cost of borrowing three times by a cumulative 140 basis points since March.

“Governor Adam Glapinski views the job of NBP as mainly to ‘support’ the economy at this time,” Commerzbank wrote in a note. “Such a stance weighs down on the zloty exchange rate.”

The currency EURPLN= edged down 0.04% at 4.4828 per euro.

Elsewhere, the Czech crown EURCZK= was up 0.07% at 26.980 per euro, testing the psychological level of 27 after firming towards it in recent days.

The pandemic is still a concern in the Czech Republic where cases are now rising at the fastest rate in Europe when adjusted for population.

Stocks were mixed, with Bucharest’s equities .BETI firming 0.21% while Warsaw’s blue chip index .WIG20 weakened 0.81%. Budapest’s stock market .BUX was down 0.6%.

Prague .PX slid 0.08% while shares in Central European Media Enterprises CETV.PRCETV.O rose over 4% after the European Commission approved Czech investment group PPF’s bid to buy the broadcaster.

CEE MARKETS

SNAPSHOT

AT 1101 CET

CURRENCIES

Latest

Previous

Daily

Change

bid

close

change

in 2020

EURCZK=

Czech crown

EURCZK=

26.9800

27.0000

+0.07%

-5.74%

EURHUF=

Hungary forint

EURHUF=

359.4500

359.8100

+0.10%

-7.87%

EURPLN=

Polish zloty

EURPLN=

4.4828

4.4810

-0.04%

-5.05%

EURRON=

Romanian leu

EURRON=

4.8745

4.8756

+0.02%

-1.77%

EURHRK=

Croatian kuna

EURHRK=

7.5680

7.5683

+0.00%

-1.62%

EURRSD=

Serbian dinar

EURRSD=

117.5300

117.5400

+0.01%

+0.03%

Note: daily change

calculated from

1800 CET

Latest

Previous

Daily

Change

close

change

in 2020

.PX

Prague

.PX

873.64

874.3300

-0.08%

-21.69%

.BUX

Budapest

.BUX

33629.93

33651.55

-0.06%

-27.02%

.WIG20

Warsaw

.WIG20

1721.39

1735.45

-0.81%

-19.94%

.BETI

Bucharest

.BETI

8903.98

8885.36

+0.21%

-10.76%

.SBITOP

Ljubljana

.SBITOP

840.58

843.77

-0.38%

-9.21%

.CRBEX

Zagreb

.CRBEX

1616.61

1618.24

-0.10%

-19.87%

.BELEX15

Belgrade

.BELEX15

695.94

695.52

+0.06%

-13.19%

.SOFIX

Sofia

.SOFIX

421.52

422.19

-0.16%

-25.81%

Yield

Yield

Spread

Daily

(bid)

change

vs Bund

change in

Czech Republic

spread

CZ2YT=RR

2-year

CZ2YT=RR

0.1110

0.0040

+081bps

+1bps

CZ5YT=RR

5-year

CZ5YT=RR

0.5350

-0.0400

+124bps

-4bps

CZ10YT=RR

10-year

CZ10YT=RR

0.9230

-0.0250

+143bps

-2bps

Poland

PL2YT=RR

2-year

PL2YT=RR

0.0420

-0.0090

+074bps

-1bps

PL5YT=RR

5-year

PL5YT=RR

0.6010

0.0050

+131bps

+1bps

PL10YT=RR

10-year

PL10YT=RR

1.3650

0.0080

+187bps

+1bps

FORWARD

3×6

6×9

9×12

3M interbank

Czech Rep

CZKFRAPRIBOR=

0.31

0.31

0.36

0.35

Hungary

HUFFRABUBOR=

1.01

1.07

1.12

0.77

Poland

PLNFRAWIBOR=

0.21

0.21

0.22

0.22

Note: FRA quotes

are for ask prices

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

(Additional reporting by Jason Hovet in Prague and Alan Charlish in Warsaw; Editing by Krishna Chandra Eluri)

(([email protected])(+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.

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