May 8, 2017 / 9:21 AM / 2 months ago

CEE MARKETS-Stocks, currencies retreat in profit-taking after Macron win

7 Min Read

    * Macron win positive, but priced in; fx, stocks give up
ground
    * Crown touches 4-week high, zloty tests 20-month high
    * Government bonds firm, Romanian auction draws strong
demand

 (Adds Romanian auction, Polish bonds, comments from Polish
copper producer)
    By Sandor Peto
    BUDAPEST, May 8 (Reuters) - Central European stocks eased
and currencies retreated from multi-week highs on Monday on
profit-taking after pro-EU centrist Emmanuel Macron won France's
second-round presidential election on Sunday.
    The euro, which initially surged to a six-month high
on Monday, also gave up its gains against the dollar and Western
Europe's main equities indices, including Paris, fell.
    Macron's victory over the far-right candidate Marine Le Pen
underpins views that France remains committed to European Union
and euro zone membership.
    The reaction of markets shows that the outcome had been
mostly priced in, said Zoltan Varga, analyst of Equilor
brokerage in Budapest.
    "This is the classic buy on the rumour, sell on the news,"
he said. 
    Macron's victory may mean some political friction for some
Central European states in the medium-term, he added.
    Macron said after his first-round victory that he would push
for EU sanctions against Poland to defend the bloc's democratic
values. He has also criticized Hungary.
    The overall impact is positive as it brings more stability
into European politics "so this would be highly beneficial for
CEE markets which largely depend on the EU political unity,"
Raiffeisen analyst Gintaras Shlizhyus said in a note.
    Macron will still face a tough national assembly elections
campaign, Erste analysts said in a note.  
    Central European currencies traded 0.1 to 0.2 percent firmer
against the euro at 1134GMT. 
    Initially, the Czech crown and the zloty
strengthened by about 0.4 percent, with the crown touching a
four-week high and the zloty testing 20-month highs.
    Regional stock indices mostly eased, by less than 0.7
percent, or were flat.
    Warsaw's bluechip index shed 0.6 percent, partly
dragged down by a 4.5 percent fall of the shares of KGHM
. 
    The company, one of the world's biggest copper producers,
reported a 147 percent surge in its first-quarter net profits
but its share price was hit by copper prices resuming their
downward trend. 
    Copper prices fell to $5,493 per tonne on Monday
after Friday's rebound from five-month lows. 
    KGHM Chief Executive Radoslaw Domagalski-Labedzki said he
saw no fundamental reasons for the price to stay below  $5500.

    Bucharest's main index shed 0.1 percent, driven down
by a 3.6 percent fall in the shares of BRD, which
retreated from a six-year high hit on Friday after the bank
reported a jump in first-quarter earnings.
    Demand for 5-year bonds auctioned by the Romanian government
surged, and the maximum yield at which the bonds were sold was a
lower-than-expected 2.78 percent.
    Polish bonds firmed a shade. Their yields dropped 2-3 basis
points and 5-year papers traded at a yield of 2.88 percent.
    
             CEE        SNAPS   AT  1334          
             MARKETS    HOT    CET           
                        CURRENCIES                
                        Lates  Previ  Daily  Chang
                        t      ous           e
                        bid    close  chang  in
                                      e      2017
 Czech                  26.67  26.73   +0.2  1.26%
 crown                     00     10     3%  
 Hungary                311.3  311.7   +0.1  -0.81
 forint                   300    300     3%      %
 Polish                 4.200  4.205   +0.1  4.85%
 zloty                      0      4     3%  
 Romanian               4.548  4.551   +0.0  -0.29
 leu                        2      5     7%      %
 Croatian               7.418  7.429   +0.1  1.85%
 kuna                       0      5     6%  
 Serbian                123.2  123.1  -0.06  0.12%
 dinar                    000    200      %  
 Note:       calculate  previ  close  1800        
 daily       d from     ous    at     CET    
 change                                      
                        STOCK                     
                        S                    
                        Lates  Previ  Daily  Chang
                        t      ous           e
                               close  chang  in
                                      e      2017
 Budapest               32644  32864  -0.67   +2.0
                          .49    .04      %     0%
 Warsaw                 2367.  2382.  -0.63   +21.
                           15     17      %    52%
 Bucharest              8287.  8298.  -0.14   +16.
                           13     65      %    97%
 Ljubljana              777.7  777.1   +0.0   +8.3
                            5      1     8%     8%
 Zagreb                 1902.  1904.  -0.11  -4.63
                           42     50      %      %
 Belgrade    <.BELEX15  716.3  715.3   +0.1  -0.14
             >              8      4     5%      %
 Sofia                  660.8  663.5  -0.41   +12.
                            1      4      %    68%
                        BONDS                     
                        Yield  Yield  Sprea  Daily
                                      d      
                        (bid)  chang  vs     chang
                               e      Bund   e in
 Poland                                           
   2-year    <PL2YT=RR  1.991  -0.02   +266  -3bps
             >                     4    bps  
   5-year    <PL5YT=RR  2.885  -0.01   +320   +1bp
             >                     5    bps      s
   10-year   <PL10YT=R  3.449  -0.02   +305  -1bps
             R>                    8    bps  
             FORWARD    RATE   AGREEMENT          
                        3x6    6x9    9x12   3M
                                             inter
                                             bank
 Hungary             <   0.24  0.335  0.435   0.16
             BUBOR=>                         
 Poland              <  1.753   1.78  1.823   1.73
             WIBOR=>                         
 Note: FRA   are for                              
 quotes      ask                             
             prices                          
 *************************************************
 *************
 
 (Additional reporting Luiza Ilie in Bucharest; editing by Susan
Thomas and Richard Lough)
  
 
 

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