By Joanna Plucinska
WARSAW, Dec 2 (Reuters) - Central European stock markets largely gained,
tracking their global peers, and some regional currencies strengthened after an
upbeat China manufacturing survey offset discouraging signals in the region's PMI
results.
China's factory activity showed a surprising rise for November, increasing risk
appetite in Asia and Europe.
In Central Europe, the PX index in Prague rose 0.45% and Budapest's main
index 0.40%. Poland's WIG 20 was down 0.11%.
Czech lender Moneta Money Bank's shares roses over 2% after it
announced late Friday it was in exclusive talks to buy the Czech building savings
and mortgage business of Germany's Wuestenrot & Wuerttembergische AG.
Most central European currencies gained as well.
"I think the stronger data in China is something which should
benefit Europe and European currencies ... that's supportive for the euro bloc and
euro equivalents like the zloty," said Rafal Benecki, chief economist at ING Bank
Slaski.
The zloty had gained 0.3% by 1016 GMT, with a Santander note saying they expect
the momentum of the EURPLN to continue towards 4.34. The Hungarian forint also
rebounded, gaining 0.39% to 333.18 per euro, after sinking to a record low on
Thursday.
CIB Bank analysts said in a note no positive correction was in sight that would
lead to lasting gains for the forint. "One of the main drivers behind the exchange
rate could continue to be expectations for a continuation of loose monetary policy,"
CIB Bank analysts said.
HPMI data in the region mostly remained negative, following continued shrinking
in euro zone factory activity. The exception was Hungary, where the PMI rose in
November.
Polish manufacturing activity continued its decline, albeit at a slower pace
than the month before. New orders fell, but more slowly.
Czech manufacturing activity saw a drop to 43.5 in November, closer to July's
10-year low of 43.1.
In Hungary, production volumes and new orders declined but still remained above
50 points, with PMI rising to 53.0 in November.
Bond yields also rose in the region, with 10-year yields in Poland up 5 basis
points to 2.064% and in the Czech Republic up 2.9 basis points to 1.493%.
"We follow the core market ... risk appetite is related to macro figures in the
euro zone and expectations for the Fed policy meeting next week. Markets are afraid
that the Fed's rhetoric may be less dovish than expected," said Arkadiusz Urbanski,
an economist at Bank Pekao SA.
CEE MARKETS SNAPSHOT AT
1116 CET
CURRENCIES
Latest Previous Daily Change
bid close change in 2019
EURCZK= Czech 25.5460 25.5570 +0.04% +0.63%
crown
EURHUF= Hungary 333.1800 334.4850 +0.39% -3.63%
forint
EURPLN= Polish 4.3030 4.3158 +0.30% -0.31%
zloty
EURRON= Romanian 4.7770 4.7829 +0.12% -2.57%
leu
EURHRK= Croatian 7.4390 7.4375 -0.02% -0.39%
kuna
EURRSD= Serbian 117.4700 117.6000 +0.11% +0.71%
dinar
Note: calculated from 1800
daily CET
change
Latest Previous Daily Change
close change in 2019
.PX Prague 1085.60 1080.750 +0.45% +10.04%
0
.BUX Budapest 43878.58 43704.85 +0.40% +12.11%
.WIG20 Warsaw 2156.59 2158.94 -0.11% -5.27%
.BETI Bucharest 9897.36 9886.93 +0.11% +34.04%
.SBITOP Ljubljana 898.35 896.10 +0.25% +11.70%
.CRBEX Zagreb 2002.01 1995.61 +0.32% +14.48%
.BELEX15 Belgrade 771.50 770.92 +0.08% +1.29%
.SOFIX Sofia 547.41 546.57 +0.15% -7.91%
BONDS
Yield Yield Spread Daily
(bid) change vs Bund change in
Czech spread
Republic
CZ2YT=RR 2-year 1.5070 0.0240 +212bp +1bps
s
CZ5YT=RR 5-year 1.2320 0.0060 +177bp -5bps
s
CZ10YT=RR 10-year 1.4930 0.0290 +178bp -4bps
s
Poland
PL2YT=RR 2-year 1.3830 -0.0060 +200bp -2bps
s
PL5YT=RR 5-year 1.7670 0.0210 +231bp -3bps
s
PL10YT=RR 10-year 2.0640 0.0500 +235bp -2bps
s
FORWARD RATE AGREEMEN
T
3x6 6x9 9x12 3M
interbank
Czech Rep 2.24 2.24 2.20 2.18
Hungary 0.28 0.30 0.37 0.17
Poland 1.73 1.70 1.66 1.71
Note: FRA are for ask prices
quotes
(Reporting by Joanna Plucinska, Alan Charlish in Warsaw, Robert Muller and Jason
Hovet in Prague, Krisztina Than in Budapest; editing by Larry King)
