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CEE MARKETS-Leu rallies after Romania names new prime minister
June 27, 2017 / 8:27 AM / 5 months ago

CEE MARKETS-Leu rallies after Romania names new prime minister

    BUDAPEST, June 27 (Reuters) - The Romanian leu
gained more than 0.2 percent versus the euro on Tuesday,
outperforming central European peers, as the nomination of a new
prime minister raised hopes of an end of a political crisis.
    Romania's president named economy minister Mihai Tudose as
premier on Monday, clearing the way for a new leftist-led
government to be formed by the end of this week.
    At 0756 GMT, the leu was 0.24 percent stronger, trading at
4.5665 versus the euro, continuing its drift from 4-1/2-year
lows approached last week as lawmakers ousted Tudose's
predecessor in a no-confidence vote. Other central European
currencies were little changed.
    Analysts said concerns over fiscal loosening and
overshooting budget targets would continue to weigh on the leu
in the long term.
    "There is less political uncertainty, so that helps, but
there are no reasons for the leu to firm too much going
forward," said a currency trader in Bucharest.
    Shares in Polish state-run refiner PKN Orlen fell
2.35 percent by 0812 GMT, underperforming the wider Warsaw
index, after the company said long-serving Chief Financial
Officer Slawomir Jedrzejczyk would leave.
    "The CFO was well regarded by the market. We were expecting
negative reaction on this announcement. CFO decision could have
been expected after shareholders significantly reduced
management board's remuneration," said Beata Szparaga, Deputy
Head of Equity Research at Vestor DM.
    
                     CEE MARKETS        SNAPSHOT   AT  0956 CET                 
                                        CURRENCIES                              
                                        Latest    Previous  Daily     Change
                                        bid       close     change    in 2017
 Czech crown                             26.2650   26.2780    +0.05%       2.83%
 Hungary forint                         309.1500  309.2850    +0.04%      -0.11%
 Polish zloty                             4.2111    4.2093    -0.04%       4.58%
 Romanian leu                             4.5665    4.5776    +0.24%      -0.69%
 Croatian kuna                            7.4080    7.4115    +0.05%       1.99%
 Serbian dinar                          121.2400  121.4200    +0.15%       1.74%
 Note: daily change  calculated from    previous  close at  1800 CET            
                                        STOCKS                                  
                                        Latest    Previous  Daily     Change
                                                  close     change    in 2017
 Prague                                   971.99    971.38    +0.06%      +5.47%
 Budapest                               35615.38  35739.11    -0.35%     +11.29%
 Warsaw                                  2339.96   2337.69    +0.10%     +20.13%
 Bucharest                               8184.56   8237.58    -0.64%     +15.52%
 Ljubljana                                803.30    802.28    +0.13%     +11.94%
 Zagreb                                  1875.64   1877.51    -0.10%      -5.98%
 Belgrade                                 708.87    709.87    -0.14%      -1.18%
 Sofia                                    694.74    691.48    +0.47%     +18.47%
                                        BONDS                                   
                                        Yield     Yield     Spread    Daily
                                        (bid)     change    vs Bund   change in
 Czech Republic                                                       spread
   2-year                                  0.073         0   +068bps       +0bps
   5-year                                 -0.018      0.06   +036bps       +6bps
   10-year                                 0.896         0   +065bps       +0bps
 Poland                                                                         
   2-year                                  1.902    -0.016   +251bps       -1bps
   5-year                                  2.588         0   +297bps       +0bps
   10-year                                  3.19    -0.004   +294bps       +0bps
                     FORWARD            RATE      AGREEMENT                     
                                        3x6       6x9       9x12      3M
                                                                      interbank
 Czech Rep                                  0.33      0.39      0.46           0
 Hungary                                    0.19      0.22     0.225        0.15
 Poland                                     1.75     1.765     1.797        1.73
 Note: FRA quotes    are for ask                                                
                     prices                                           
 
 (Reporting by Luiza Ilie and Bartosz Chmielewski; Writing by
Gergely Szakacs; Editing by Andrew Heavens)
  
 
 

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