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CEE MARKETS-Romanian leu holds steady ahead of new PM nomination
June 26, 2017 / 9:27 AM / 6 months ago

CEE MARKETS-Romanian leu holds steady ahead of new PM nomination

    By Krisztina  Than
    BUDAPEST, June 26 (Reuters) - The Romanian leu held steady
on Monday, unrattled by the ousting of Prime Minister Sorin
Grindeanu last week, and stocks markets in the region opened
higher, led by Polish banks. 
    Poland's index led gains, trading 1.2 percent
higher at 0809 GMT. The country's second-largest lender Bank
Pekao SA jumped 3 percent, while mBank surged
2.4 percent.
     Traders said this was due to JP Morgan raising the target
price for Pekao, and putting it to "overweight" from
"underweight".
    The ruling party in Romania is expected to propose a new
prime minister to President Klaus Iohannis, a centrist, on
Monday to replace Grindeanu who was ousted last week in a
no-confidence vote initiated by his own party.
    Once Iohannis endorses the candidate, a new government could
be formed within days. The political uncertainty follows jitters
over the government's loose fiscal policies, but it was not
expected to have a major impact on policy.
    "In our view, changing a prime minister will not entangle
any major shifts in the current government policies except from
the possibility of deviating further away from the
anti-corruption path than under Grindeanu's leadership,"
analysts at Nordea bank said in a note.
    "Regardless of who will be the new Romanian PM, the
political and fiscal risks will remain in place with the
government policies continuing to be quite hasty and sometimes
unpredictable ... we are not too optimistic about the RON in the
medium-term," they added.
    The leu was steady at around 4.57 to the euro but
was still hovering around its weakest levels since 2012 of 4.599
hit last week.
    "A possibly fast implementation of a new government... and
the resolving of the political uncertainty could in our view
induce a quick return of EUR/RON into the 4.50-4.55 range,"
Raiffeisen analysts said.
    The Hungarian forint and the Polish zloty
 were both 0.1 percent firmer in early, slow trade. 
    
               CEE MARKETS  SNAPSH   AT  0940 CET         
                            OT                      
                            CURRENCIES                    
                            Latest  Previo  Daily   Change
                                    us              
                            bid     close   change  in
                                                    2017
 Czech crown                   n/a  26.261   n/a     n/a
                                         5          
 Hungary                    309.30  309.68   +0.12  -0.16%
 forint                         00      50       %  
 Polish zloty               4.2207  4.2255   +0.11   4.34%
                                                 %  
 Romanian leu               4.5710  4.5721   +0.02  -0.79%
                                                 %  
 Croatian                   7.4120  7.4155   +0.05   1.93%
 kuna                                            %  
 Serbian                    121.41  121.67   +0.21   1.60%
 dinar                          00      00       %  
 Note: daily   calculated   previo  close   1800          
 change        from         us      at      CET     
                            STOCKS                        
                            Latest  Previo  Daily   Change
                                    us              
                                    close   change  in
                                                    2017
 Prague                     969.08  980.68  -1.18%   +5.15
                                                         %
 Budapest                   35780.  35599.   +0.51   +11.8
                                40      51       %      0%
 Warsaw                     2334.8  2304.4   +1.32   +19.8
                                 1       8       %      6%
 Bucharest                  8270.2  8347.5  -0.93%   +16.7
                                 2       5              3%
 Ljubljana                  795.27  792.22   +0.38   +10.8
                                                 %      3%
 Zagreb                     1867.4  1864.5   +0.15  -6.39%
                                 4       8       %  
 Belgrade                     0.00  705.79   +0.00  -100.0
                                                 %      0%
 Sofia                      687.77  687.67   +0.01   +17.2
                                                 %      8%
                            BONDS                         
                            Yield   Yield   Spread  Daily
                            (bid)   change  vs      change
                                            Bund    in
 Czech                                              spread
 Republic                                           
   2-year                    0.049       0   +068b   +2bps
                                                ps  
   5-year                   -0.014   0.048   +036b   +4bps
                                                ps  
   10-year                   0.896       0   +064b   +0bps
                                                ps  
 Poland                                                   
   2-year                    1.937   -0.07   +256b   -5bps
                                                ps  
   5-year                    2.628   0.007   +300b   +0bps
                                                ps  
   10-year                   3.245       0   +299b   +0bps
                                                ps  
               FORWARD      RATE    AGREEMENT             
                            3x6     6x9     9x12    3M
                                                    interb
                                                    ank
 Czech Rep             <PR    0.34    0.41    0.49       0
               IBOR=>                               
 Hungary               <BU   0.185     0.2    0.23    0.15
               BOR=>                                
 Poland                <WI    1.75   1.766    1.82    1.73
               BOR=>                                
 Note: FRA     are for ask                                
 quotes        prices                               
 

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