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CEE MARKETS-Shares, bonds tread water ahead of U.S. healthcare vote
March 24, 2017 / 10:50 AM / 9 months ago

CEE MARKETS-Shares, bonds tread water ahead of U.S. healthcare vote

    * Stocks mixed and rangebound, investors await U.S. vote
    * Zloty, forint ease slightly, tracking dollar/euro

    By Sandor Peto
    BUDAPEST, March 24 (Reuters) - Central European assets moved
sideways on Friday as investors awaited a U.S. vote on
healthcare, legislation that will test President Donald Trump's
ability to work with Congress and deliver on other priorities
like tax cuts and infrastructure spending. 
    Warsaw's bluechip equities index eased 0.1 percent
by 0933 GMT, Budapest gained 0.1 percent, while Prague
 and Bucharest rose 0.2 percent.
    Hungarian pharmaceutical Richter outperformed the
market, rising 0.6 percent, after its board proposed a
higher-than-expected dividend of 106 forints per share. 
    "EM (emerging markets) watching the U.S. healthcare debate
from the front seat," said Simon Quijano-Evans, strategist of
Legal & General Investment Management.
    Analysts at Erste said that a record uptake of cheap
long-term loans by banks at the European Central Bank's TLTRO
auction was a good sign for economic growth in Europe.
 
    With the dollar bouncing back from the 1.08 level against
the euro, the forint and the zloty eased
only a shade.
    Government bond yields were mostly flat after a fall in the
past weeks after a signal from the Federal Reserve that its rate
hikes may not be as fast as expected.
    Hungary's 10-year bonds traded at yields around 3.41
percent, near their lowest levels since early January.
    "The next key thing is the central bank's meeting on
Tuesday," one Budapest-based fixed income trader said, adding
that there were mixed expectations if the bank will continue to
pump liquidity into interbank markets.
    The Hungarian central bank's liquidity-boosting measures
have helped short-term debt and money market yields fall near
zero, and the bank has not signalled that it would end loosening
despite a rise in inflation.
    Analysts expect the bank to further lower its cap on the
3-month deposits it accepts from banks.
    The Czech crown stayed stuck to the central bank's
cap at 27.02 against the euro.
    Most analysts expect the bank to abandon the cap in April or
May.
    The crown's implied rate in one-year forward contracts
 touched a 6-month low at 26.793. 
    
              CEE        SNAPS   AT  1033          
              MARKETS    HOT    CET           
                         CURRENCIES                
                         Lates  Previ  Daily  Chang
                         t      ous           e
                         bid    close  chang  in
                                       e      2017
 Czech crown             27.02  27.03   +0.0  -0.05
                            00     00     4%      %
 Hungary                 309.4  309.1  -0.10  -0.21
 forint                    600    500      %      %
 Polish                  4.264  4.262  -0.05  3.27%
 zloty                       5      2      %  
 Romanian                4.554  4.555   +0.0  -0.43
 leu                         5      5     2%      %
 Croatian                7.418  7.419   +0.0  1.85%
 kuna                        0      5     2%  
 Serbian                 123.9  124.0   +0.0  -0.45
 dinar                     100    000     7%      %
 Note: daily  calculate  previ  close  1800        
 change       d from     ous    at     CET    
                         STOCK                     
                         S                    
                         Lates  Previ  Daily  Chang
                         t      ous           e
                                close  chang  in
                                       e      2017
 Prague                  982.8  980.7   +0.2   +6.6
                             6      6     1%     5%
 Budapest                32161  32127   +0.1   +0.5
                           .79    .89     1%     0%
 Warsaw                  2233.  2235.  -0.09   +14.
                            33     33      %    65%
 Bucharest               7977.  7961.   +0.2   +12.
                            77     53     0%    60%
 Ljubljana               789.7  793.7  -0.51   +10.
                             2      8      %    05%
 Zagreb                  2092.  2065.   +1.3   +4.9
                            86     15     4%     1%
 Belgrade     <.BELEX15  742.9  740.3   +0.3   +3.5
              >              3      1     5%     6%
 Sofia                   636.8  639.3  -0.39   +8.5
                             3      5      %     9%
                         BONDS                     
                         Yield  Yield  Sprea  Daily
                                       d      
                         (bid)  chang  vs     chang
                                e      Bund   e in
 Czech                                        sprea
 Republic                                     d
   2-year     <CZ2YT=RR  -0.39  -0.02   +034  -3bps
              >              3      3    bps  
   5-year     <CZ5YT=RR  0.168  -0.00   +047   +0bp
              >                     2    bps      s
   10-year    <CZ10YT=R  0.988  -0.00   +056  -1bps
              R>                    6    bps  
 Poland                                            
   2-year     <PL2YT=RR  2.056  -0.02   +279  -3bps
              >                     3    bps  
   5-year     <PL5YT=RR  2.959  -0.00   +326  -1bps
              >                     8    bps  
   10-year    <PL10YT=R  3.565  -0.00   +314  -1bps
              R>                    8    bps  
              FORWARD    RATE   AGREEMENT          
                         3x6    6x9    9x12   3M
                                              inter
                                              bank
 Czech Rep            <   0.29   0.32   0.41      0
              PRIBOR=>                        
 Hungary              <   0.29   0.37    0.5   0.22
              BUBOR=>                         
 Poland               <   1.76   1.79   1.83   1.73
              WIBOR=>                         
 Note: FRA    are for                              
 quotes       ask                             
              prices                          
 

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