June 3, 2020 / 9:59 AM / a month ago

CEE MARKETS-Stocks rise, currencies stable on economic hope

    By Anita Komuves
    BUDAPEST, June 3 (Reuters) - Central European stocks rose on
Wednesday and currencies held on to their gains as the lifting
of lockdown measures and hopes of more economic stimulus
measures fueled global market optimism.
    The economic crisis caused by the coronavirus pandemic had
hammered currencies in the region, but a new risk-on mood has
helped them to recoup a significant part of their losses.
    Most CEE currencies were stable.
    The forint eased 0.14% on the day and was trading
at 345.90 versus the euro, but was still around its strongest
since late March, when lockdown measures were introduced. 
    "The general risk-on mood strengthened the forint as far as
345 to the euro from the levels of 350," and FX trader in
Budapest said. "This is not specific to the forint, even the
zloty is firming despite the unexpected rate cut."
    The Polish zloty was little changed at 4.385
versus the euro on Wednesday, after a more than 1.4% jump last
Tuesday, before the central bank announced a surprise
40-basis-point rate cut to 0.1% on Thursday.
    "The 200-day moving average currently resides near 4.36.
EURPLN has then reached the levels at which we expect
consolidation (pause) for some time," Santander Bank Polska
wrote in a note. 
    The Czech crown was at 26.560 versus the euro, up
0.06% on the day. 
    A client note from Commerzbank expected "moderate CZK
appreciation".
    Stock markets across the region firmed, with Budapest
leading gains and adding near 2% by 0818 GMT. OTP Bank
, the bourse's most liquid paper, added 4%, or more
than 40% since hitting a two-year low at the height of the
pandemic crisis.
    Prague's equities gained 0.2% as London- and Prague-listed
antivirus software maker Avast was expected
to join the FTSE 100 index.
    

            CEE        SNAPSHOT    AT                         
            MARKETS               1018 CET            
                       CURRENCIE                              
                       S                              
                       Latest     Previous  Daily     Change
                       bid        close     change    in 2020
 Czech                   26.5600   26.5770    +0.06%    -4.25%
 crown                                                
 Hungary                345.9000  345.4200    -0.14%    -4.27%
 forint                                               
 Polish                   4.3850    4.3865    +0.03%    -2.93%
 zloty                                                
 Romanian                 4.8360    4.8370    +0.02%    -0.99%
 leu                                                  
 Croatian                 7.5750    7.5825    +0.10%    -1.71%
 kuna                                                 
 Serbian                117.5600  117.6300    +0.06%    +0.01%
 dinar                                                
 Note:      calculated from                 1800 CET          
 daily                                                
 change                                               
                                                              
                       Latest     Previous  Daily     Change
                                  close     change    in 2020
 Prague                   923.46  921.8200    +0.18%   -17.23%
 Budapest               36658.87  35967.41    +1.92%   -20.45%
 Warsaw                  1768.39   1736.36    +1.84%   -17.75%
 Bucharest               8950.35   8814.37    +1.54%   -10.29%
 Ljubljana                856.23    844.24    +1.42%    -7.52%
 Zagreb                  1663.25   1650.99    +0.74%   -17.56%
 Belgrade   <.BELEX15     677.74    673.81    +0.58%   -15.46%
            >                                         
 Sofia                    458.18    461.03    -0.62%   -19.35%
                                                              
                       Yield      Yield     Spread    Daily
                       (bid)      change    vs Bund   change
                                                      in
 Czech                                                spread
 Republic                                             
   2-year   <CZ2YT=RR     0.1450    0.0870   +079bps     +8bps
            >                                         
   5-year   <CZ5YT=RR     0.3850   -0.0440   +098bps     -7bps
            >                                         
   10-year  <CZ10YT=R     0.7740    0.0670   +116bps     +4bps
            R>                                        
 Poland                                                       
   2-year   <PL2YT=RR     0.2500    0.0070   +090bps     +0bps
            >                                         
   5-year   <PL5YT=RR     0.7710    0.0080   +137bps     -1bps
            >                                         
   10-year  <PL10YT=R     1.3110    0.0130   +169bps     -2bps
            R>                                        
            FORWARD                                           
                       3x6        6x9       9x12      3M
                                                      interban
                                                      k
 Czech Rep          <       0.25      0.26      0.29      0.34
            PRIBOR=>                                  
 Hungary            <       0.77      0.72      0.67      0.91
            BUBOR=>                                   
 Poland             <       0.25      0.26      0.27      0.28
            WIBOR=>                                   
 Note: FRA  are for ask prices                                
 quotes                                               
 
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