June 4, 2020 / 9:51 AM / a month ago

CEE MARKETS-Currencies, stocks ease, with eyes on ECB stimulus moves

    BUCHAREST, June 4 (Reuters) - Central European currencies
fell on Thursday, with the crown and zloty leading regional
losses, as investors focused on the European Central Bank's
policy meeting, which is expected to  approve more aid to the
coronavirus-hit euro zone.
    The economic crisis caused by the new virus pandemic had
hammered currencies in the region, which is the main trading
partner of the euro zone, but a new risk-on mood has partly
helped them to recoup a significant part of their losses.
    By 0910 GMT, the Czech crown and the Polish zloty
 fell by 0.6% on the day to as low as 26.73 and 4.44
against the euro respectively.
    Czech National Bank Governor Jiri Rusnok said in a radio
interview on Thursday the crown was likely to stabilise around 
current levels it reached after recent strengthening.
   
    Hungary's forint eased 0.2% and the Romanian leu
edged down 0.1%. 
    Market watchers expect the ECB to increase bond purchases by
500 billion euros, but a key question is whether it will act on
Thursday or hold out until July as a deal on European Union-wide
fiscal support strengthens the case for patience.
    "Trade is pretty sluggish right now. The general focus is
now on the ECB's next policy moves and their timing," said one
dealer in Bucharest. 
    Stocks also fell, with Budapest's leading losses with
a 0.9% decline. MOL and OTP Bank fell 1.74%
and 3.16% respectively.
    Elsewhere, Romania's finance ministry plans to sell 700
million lei worth of 2027 treasury bonds and an additional 500
million lei of 2023 debt.
             CEE        SNAPSHOT     AT                         
             MARKETS                1129 CET            
                        CURRENCIES                              
                        Latest      Previous  Daily     Change
                        bid         close     change    in 2020
 Czech                     26.7300   26.5510    -0.67%    -4.86%
 crown                                                  
 Hungary                  345.5500  344.8000    -0.22%    -4.17%
 forint                                                 
 Polish                     4.4430    4.4100    -0.74%    -4.20%
 zloty                                                  
 Romanian                   4.8370    4.8315    -0.11%    -1.01%
 leu                                                    
 Croatian                   7.5720    7.5715    -0.01%    -1.67%
 kuna                                                   
 Serbian                  117.6100  117.6200    +0.01%    -0.03%
 dinar                                                  
 Note:       calculated from                  1800 CET          
 daily                                                  
 change                                                 
                                                                
                        Latest      Previous  Daily     Change
                                    close     change    in 2020
 Prague                     932.89  927.5300    +0.58%   -16.38%
 Budapest                 36937.69  37317.04    -1.02%   -19.84%
 Warsaw                    1758.90   1766.85    -0.45%   -18.19%
 Bucharest                 8927.32   8981.80    -0.61%   -10.52%
 Ljubljana                  861.34    860.56    +0.09%    -6.97%
 Zagreb                    1669.26   1673.45    -0.25%   -17.26%
 Belgrade    <.BELEX15      676.28    678.37    -0.31%   -15.64%
             >                                          
 Sofia                      456.92    458.87    -0.42%   -19.58%
                                                                
                        Yield       Yield     Spread    Daily
                        (bid)       change    vs Bund   change
                                                        in
 Czech                                                  spread
 Republic                                               
   2-year    <CZ2YT=RR      0.1000    0.0570   +072bps     +4bps
             >                                          
   5-year    <CZ5YT=RR      0.3870    0.0240   +097bps     +3bps
             >                                          
   10-year   <CZ10YT=R      0.7840    0.0700   +114bps     +8bps
             R>                                         
 Poland                                                         
   2-year    <PL2YT=RR      0.2260   -0.0140   +085bps     -3bps
             >                                          
   5-year    <PL5YT=RR      0.7810    0.0170   +136bps     +3bps
             >                                          
   10-year   <PL10YT=R      1.3810    0.0250   +174bps     +3bps
             R>                                         
             FORWARD                                            
                        3x6         6x9       9x12      3M
                                                        interban
                                                        k
 Czech Rep           <        0.27      0.28      0.30      0.34
             PRIBOR=>                                   
 Hungary             <        0.78      0.73      0.68      0.90
             BUBOR=>                                    
 Poland              <        0.26      0.28      0.30      0.27
             WIBOR=>                                    
 Note: FRA   are for ask prices                                 
 quotes                                                 
 
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