November 27, 2019 / 10:46 AM / 16 days ago

CEE MARKETS-Trade deal talks boost stocks, forint off record low

    BUCHAREST, Nov 27 (Reuters) - Central European stocks rose
in tandem with other European markets on Wednesday, bolstered by
hopes for a U.S.-China trade deal, while the Hungarian forint
eased off a record low reached on Tuesday.
    U.S. President Donald Trump said on Tuesday the United
States and China were close to agreement on the first phase of a
trade deal and that Washington was in the "final throes" of work
that would defuse a 16-month trade war with Beijing.

    By 1010 GMT, Bucharest's blue-chip index led the
region, up 0.6% on the day. Prague's was up 0.4% while
Budapest's and Warsaw's were up 0.2% and 0.1%
respectively.
    The Hungarian forint was 0.1% stronger versus the
euro on the day at 335.9500, off a record low of 336.95 hit on
Tuesday. It remains the region's worst performer, having lost
4.5% this year, and analysts said loose monetary policy despite
rising core inflation would continue to put downward pressure.
    "We trace the underperformance of the forint to overshooting
inflation," Commerzbank said in a daily note.  
    "We view the latest EUR-HUF move to be an extension of the
trend already underway because of this rising core inflation
trend. (The central bank's) unconditional dovish stance is
making the FX market increasingly uneasy."
    Elsewhere in the region, the Czech crown and
Polish zloty were each down 0.1% against the euro.
    The Romanian leu was flat, but fiscal slippage and
rising budget and current account deficits will continue to put
pressure on assets.
    The finance ministry aims to sell 200 million euros of
December 2023 bonds later on Wednesday. Markets expect the
finance ministry to ramp up debt sales to plug the budget
deficit.
    "In our view, the market remains fairly complacent on the
increased budget gap news, as yields are probably at attractive
enough levels to keep buying interest alive," ING Bank Romania
said in a note.
            CEE       SNAPSHO   AT                      
            MARKETS   T        1121              
                               CET               
                      CURRENC                           
                      IES                        
                      Latest   Previou  Daily    Change
                               s                 
                      bid      close    change   in 2019
 Czech      <EURCZK=  25.5170  25.4980   -0.07%   +0.74%
 crown      >                                    
 Hungary    <EURHUF=  336.050  336.110   +0.02%   -4.45%
 forint     >               0        0           
 Polish     <EURPLN=   4.3077   4.3046   -0.07%   -0.42%
 zloty      >                                    
 Romanian   <EURRON=   4.7790   4.7805   +0.03%   -2.62%
 leu        >                                    
 Croatian   <EURHRK=   7.4380   7.4333   -0.06%   -0.38%
 kuna       >                                    
 Serbian    <EURRSD=  117.480  117.640   +0.14%   +0.70%
 dinar      >               0        0           
 Note:      calculated from             1800            
 daily                                  CET      
 change                                          
                                                        
                      Latest   Previou  Daily    Change
                               s                 
                               close    change   in 2019
 Prague               1084.78  1079.01   +0.53%   +9.96%
                                    00           
 Budapest             43888.3  43781.9   +0.24%   +12.13
                            8        6                 %
 Warsaw               2191.48  2190.58   +0.04%   -3.74%
 Bucharest            9859.52  9797.21   +0.64%   +33.53
                                                       %
 Ljubljana  <.SBITOP   897.78   897.51   +0.03%   +11.63
            >                                          %
 Zagreb               1991.59  1994.43   -0.14%   +13.88
                                                       %
 Belgrade   <.BELEX1   767.73   765.72   +0.26%   +0.79%
            5>                                   
 Sofia                 542.55   545.79   -0.59%   -8.73%
                      BONDS                             
                      Yield    Yield    Spread   Daily
                      (bid)    change   vs Bund  change
                                                 in
 Czech                                           spread
 Republic                                        
   2-year   <CZ2YT=R   1.4430  -0.0250   +208bp    -3bps
            R>                                s  
   5-year   <CZ5YT=R   1.2150  -0.0370   +183bp    -4bps
            R>                                s  
   10-year  <CZ10YT=   1.4600  -0.0230   +184bp    -2bps
            RR>                               s  
 Poland                                                 
   2-year   <PL2YT=R   1.3740  -0.0090   +201bp    -1bps
            R>                                s  
   5-year   <PL5YT=R   1.7400   0.0030   +235bp    +0bps
            R>                                s  
   10-year  <PL10YT=   1.9970   0.0060   +237bp    +1bps
            RR>                               s  
            FORWARD   RATE     AGREEME                  
                               NT                
                      3x6      6x9      9x12     3M
                                                 interba
                                                 nk
 Czech Rep               2.23     2.23     2.16     2.18
            <PRIBOR=                             
            >                                    
 Hungary                 0.23     0.24     0.28     0.17
                                                 
 Poland                  1.73     1.70     1.66     1.71
                                                 
 Note: FRA  are for ask                                 
 quotes     prices                               
 
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below