July 14, 2020 / 9:33 AM / 25 days ago

CEE MARKETS-Assets weaken on coronavirus worries, Polish rate meeting in focus

    By Anita Komuves
    BUDAPEST, July 14 (Reuters) - Central European currencies
edged lower and most stock indices were down on Tuesday as new
lockdown restrictions in California and escalating U.S.-China
tensions dampened investor's risk appetite globally.

    The Polish central bank meets later on Tuesday. The monetary
policy council delivered a surprise 40 basis point cut in May,
cutting the benchmark rate to 0.1% to support an economy
struggling with the impact of the coronavirus.
    Commerzbank analysts wrote in a note that "a no change
outcome is highly likely today" as Poland's finance minister
expects a V-shaped economic recovery and inflation accelerated
sharply to above-target 3.3% in June.  
    "Hawks on the Polish MPC have begun to demand a timetable
for normalising rates next year," they said.
    The zloty edged down 0.1%, trading at 4.489 to the
euro, little moved after incumbent Andrzej Duda was on Monday
declared the winner of the presidential election.  
    Elsewhere, the Czech crown slid 0.15% to 26.680 to
the euro. The Romanian leu was little moved and the
Hungarian forint lost 0.25%, trading at 355.150 versus
the common currency. 
    "The forint is staying within its most recent range,"
Equilor said in a client note. "The Hungarian currency has not
moved significantly for days, the Thursday rate meeting of the
ECB might give a stronger momentum to the FX market." 
    Most stock indices in the region fell, with Prague 
leading losses by dropping 1.7%.
    London- and Prague-listed antivirus software maker Avast
 fell as much as 5%. Tech stocks were coming
under pressure as lockdown restrictions were reintroduced in
California, a hub for the technology sector.    
    Warsaw's blue chip index was down 1.1% while Budapest's
equities edged down 0.15%. 
    Hungarian oil company MOL said on Tuesday that it
made a gas discovery in Tal Block, Pakistan. MOL's shares were
up 0.33% by 0833 GMT, outperforming the wider market.
 
        
                   CEE      SNAPSHO   AT                      
                   MARKETS  T        1023              
                                     CET               
                                                              
                   CURRENC                                    
                   IES                                 
                            Latest   Previou  Daily    Change
                                     s                 
                            bid      close    change   in 2020
 EURCZK  Czech     <EURCZK  26.6800  26.6390   -0.15%   -4.68%
 =       crown     =>                                  
 EURHUF  Hungary   <EURHUF  355.150  354.200   -0.27%   -6.76%
 =       forint    =>             0        0           
 EURPLN  Polish    <EURPLN   4.4890   4.4859   -0.07%   -5.18%
 =       zloty     =>                                  
 EURRON  Romanian  <EURRON   4.8440   4.8430   -0.02%   -1.15%
 =       leu       =>                                  
 EURHRK  Croatian  <EURHRK   7.5270   7.5325   +0.07%   -1.08%
 =       kuna      =>                                  
 EURRSD  Serbian   <EURRSD  117.550  117.610   +0.05%   +0.02%
 =       dinar     =>             0        0           
         Note:     calculated from            1800            
         daily                                CET      
         change                                        
                                                              
                   STOCKS                                     
                            Latest   Previou  Daily    Change
                                     s                 
                                     close    change   in 2020
 .PX     Prague              936.61  952.470   -1.67%  -16.05%
                                           0           
 .BUX    Budapest           35281.8  35335.8   -0.15%  -23.44%
                                  4        6           
 .WIG20  Warsaw    <.WIG20  1781.67  1801.64   -1.11%  -17.14%
                   >                                   
 .BETI   Buchares           8482.17  8470.52   +0.14%  -14.99%
         t                                             
 .SBITO  Ljubljan  <.SBITO   864.37   862.73   +0.19%   -6.64%
 P       a         P>                                  
 .CRBEX  Zagreb    <.CRBEX  1611.88  1612.15   -0.02%  -20.10%
                   >                                   
 .BELEX  Belgrade  <.BELEX   653.79   644.03   +1.52%  -18.45%
 15                15>                                 
 .SOFIX  Sofia     <.SOFIX   443.73   443.73   +0.00%  -21.90%
                   >                                   
                                                              
                   BONDS                                      
                            Yield    Yield    Spread   Daily
                            (bid)    change   vs Bund  change
                                                       in
         Czech                                         spread
         Republic                                      
 CZ2YT=    2-year  <CZ2YT=   0.1360   0.1830   +080bp   +19bps
 RR                RR>                              s  
 CZ5YT=    5-year  <CZ5YT=   0.3520  -0.0400   +099bp    -2bps
 RR                RR>                              s  
 CZ10YT            <CZ10YT   0.8850   0.0280   +132bp    +6bps
 =RR     10-year   =RR>                             s  
         Poland                                               
 PL2YT=    2-year  <PL2YT=   0.1260  -0.0040   +079bp    +1bps
 RR                RR>                              s  
 PL5YT=    5-year  <PL5YT=   0.7790  -0.0480   +141bp    -3bps
 RR                RR>                              s  
 PL10YT            <PL10YT   1.3640  -0.0400   +180bp    -1bps
 =RR     10-year   =RR>                             s  
                                                              
                   FRA                                        
                            3x6      6x9      9x12     3M
                                                       interba
                                                       nk
         Czech     <CZKFRA     0.32     0.32     0.33     0.34
         Rep       ><PRIBO                             
                   R=>                                 
         Hungary   <HUFFRA     0.67     0.66     0.65     0.70
                   ><BUBOR                             
                   =>                                  
         Poland    <PLNFRA     0.21     0.22     0.23     0.26
                   ><WIBOR                             
                   =>                                  
         Note: FRA quotes are for                             
         ask prices                                    
         
0 : 0
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