March 15, 2017 / 3:09 PM / 5 months ago

CEE MARKETS-Markets calm ahead of expected U.S. rate hike, Dutch vote

    * Forint, leu, zloty, crown, dinar steady
    * Activity low as traders await Fed, result of Dutch vote
    * Poland's PZU up after better than expected results

    WARSAW, March 15 (Reuters) - Central European currencies
held steady on Wednesday ahead of an expected U.S. Federal
Reserve interest rate hike which could weigh on the
attractiveness of regional assets, analysts said.
    "We are waiting for the evening, when the Fed will most
likely raise rates," said Mateusz Sutowicz, analyst at the
Warsaw-based Bank Millennium.
    With futures pricing in more than a 90 percent chance the
Federal Reserve would hike its rates, investors are also focused
on the pace of increases for the rest of the year.
    Sutowicz said signals the Fed would be willing to raise
rates beyond a scenario of about three hikes this year could
weigh on the zloty, reducing its relative attractiveness.
    Investors are also watching results in the Dutch
parliamentary election, the first of three polls in the European
Union this year where nationalist parties are seeking
breakthroughs.
    By 1326 GMT the zloty was flat versus the euro,
with other regional currencies little changed. Hungary's forint
 strengthened by 0.1 percent.
    Polish rates have remained unchanged at a record low of 1.50
percent since March 2015 and the central bank governor said last
week there were no reason to change them this year.
    Polish core inflation excluding food and energy prices
accelerated to a lower-than-expected 0.3 percent last month,
data from the central bank showed.
    Central and eastern Europe's largest insurer, the Polish PZU
, posted better than expected profit for 2016 and
signalled it will pay out significantly more than half of it in
the form of dividend. 
    In Hungary, minutes from the February meeting showed central
bank rate-setters voted unanimously to keep the base rate on
hold, saying they would focus attention on the expected policy
divergence between leading global central banks.

 *                                                            *
 **************** CEE MARKETS SNAPSHOT AT 1426 CET ************ 
 ************************* CURRENCIES *************************
                            Latest  Previous   Daily   Change  
                            bid     close      change  in 2017 
 Czech crown                 27.020    27.024   +0.01%  -0.05% 
 Hungary forint             310.850   311.060   +0.07%  -0.65% 
 Polish zloty                 4.320     4.320   +0.02%  +1.95% 
 Romanian leu                 4.542     4.544   +0.04%  -0.15% 
 Croatian kuna                7.428     7.428   +0.00%  +1.72% 
 Serbian dinar              123.850   123.895   +0.04%  -0.40% 
 Note: daily change calculated from previous close at 1800 CET 
 **************************** STOCKS **************************
                            Latest   Previous  Daily   Change  
                                     close     change  in 2017 
 Prague                       981.09   978.59   +0.26%  +6.45% 
 Budapest                   32636.18 32686.30   -0.15%  +1.98% 
 Warsaw                      2237.42  2238.38   -0.04% +14.86% 
 Bucharest                   7915.85  7890.26   +0.32% +11.73% 
 Ljubljana                    792.92   788.63   +0.54% +10.50% 
 Zagreb                      2170.38  2219.10   -2.20%  +8.80% 
 Belgrade                     741.88   739.29   +0.35%  +3.42% 
 Sofia                        623.64   619.37   +0.69%  +6.35% 
 ***************************** BONDS **************************
                        Yield    Yield    Spread     Daily     
                        (bid)    change   vs Bund    change in 
 Czech Republic                                      spread    
   2-year                -0.57    +0.186   +024bps   +19bps    
   5-year                0.091    +0.038   +045bps    +6bps    
  10-year                0.883    +0.096   +046bps   +13bps    
 Poland 
   2-year                3.730    +0.030   +331bps    +6bps  
   5-year                0.000    +0.000   +000bps    +0bps  
  10-year                0.000    +0.000   +000bps    +0bps  
 Note: FRA quotes are for ask prices 
 **************************************************************
 
 (Reporting by Marcin Goettig and Anna Wlodarczak; Editing by
Julia Glover)
  
 
 

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