July 16, 2020 / 9:11 AM / 18 days ago

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

    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 fell half a percent and Budapest
 was down 0.3%, although a rise in Czech utility CEZ
 helped buoy Prague.
    Currencies for the most part traded sideways after gaining
some momentum this week.
    The Polish zloty eased 0.3% and the Czech crown
 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 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      SNAPSHO   AT                      
                   MARKETS  T        1036              
                                     CET               
                                                              
                   CURRENC                                    
                   IES                                 
                            Latest   Previou  Daily    Change
                                     s                 
                            bid      close    change   in 2020
 EURCZK  Czech     <EURCZK  26.6780  26.6685   -0.04%   -4.67%
 =       crown     =>                                  
 EURHUF  Hungary   <EURHUF  353.910  353.910   +0.00%   -6.43%
 =       forint    =>             0        0           
 EURPLN  Polish    <EURPLN   4.4860   4.4743   -0.26%   -5.12%
 =       zloty     =>                                  
 EURRON  Romanian  <EURRON   4.8430   4.8445   +0.03%   -1.13%
 =       leu       =>                                  
 EURHRK  Croatian  <EURHRK   7.5320   7.5323   +0.00%   -1.15%
 =       kuna      =>                                  
 EURRSD  Serbian   <EURRSD  117.580  117.620   +0.03%   -0.01%
 =       dinar     =>             0        0           
         Note:     calculated from            1800            
         daily                                CET      
         change                                        
                                                              
                   STOCKS                                     
                            Latest   Previou  Daily    Change
                                     s                 
                                     close    change   in 2020
 .PX     Prague              949.63  948.110   +0.16%  -14.88%
                                           0           
 .BUX    Budapest           35268.7  35371.8   -0.29%  -23.47%
                                  2        8           
 .WIG20  Warsaw    <.WIG20  1786.17  1794.78   -0.48%  -16.93%
                   >                                   
 .BETI   Buchares           8475.79  8439.27   +0.43%  -15.05%
         t                                             
 .SBITO  Ljubljan  <.SBITO   866.40   870.67   -0.49%   -6.42%
 P       a         P>                                  
 .CRBEX  Zagreb    <.CRBEX  1608.03  1607.57   +0.03%  -20.29%
                   >                                   
 .BELEX  Belgrade  <.BELEX   658.24   655.53   +0.41%  -17.89%
 15                15>                                 
 .SOFIX  Sofia     <.SOFIX   442.45   442.17   +0.06%  -22.12%
                   >                                   
                                                              
                   BONDS                                      
                            Yield    Yield    Spread   Daily
                            (bid)    change   vs Bund  change
                                                       in
         Czech                                         spread
         Republic                                      
 CZ2YT=    2-year  <CZ2YT=   0.2000   0.0960   +087bp   +10bps
 RR                RR>                              s  
 CZ5YT=    5-year  <CZ5YT=   0.4800   0.0270   +113bp    +4bps
 RR                RR>                              s  
 CZ10YT            <CZ10YT   0.9360   0.0560   +139bp    +6bps
 =RR     10-year   =RR>                             s  
         Poland                                               
 PL2YT=    2-year  <PL2YT=   0.1220  -0.0120   +079bp    -1bps
 RR                RR>                              s  
 PL5YT=    5-year  <PL5YT=   0.7710  -0.0400   +142bp    -3bps
 RR                RR>                              s  
 PL10YT            <PL10YT   1.3470  -0.0150   +180bp    -1bps
 =RR     10-year   =RR>                             s  
                                                              
                   FRA                                        
                            3x6      6x9      9x12     3M
                                                       interba
                                                       nk
         Czech     <CZKFRA     0.34     0.35     0.36     0.34
         Rep       ><PRIBO                             
                   R=>                                 
         Hungary   <HUFFRA     0.68     0.68     0.67     0.70
                   ><BUBOR                             
                   =>                                  
         Poland    <PLNFRA     0.20     0.22     0.22     0.25
                   ><WIBOR                             
                   =>                                  
         Note: FRA quotes are for                             
         ask prices                                    
         
0 : 0
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