January 30, 2020 / 10:56 AM / in 25 days

CEE MARKETS-Avast drops further as region's stocks fall, forint weak

    PRAGUE, Jan 30 (Reuters) - Central Europe's stock markets
slipped on Thursday amid global fears of a virus spreading in
China, while cybersecurity firm Avast
continued to lead Prague lower following reports of data privacy
concerns this week.
    On currency markets, Hungary's forint neared record lows,
which it reached against the euro after a swap tender on Monday.
It was down 0.2% at 338.18 to the euro by midday, off a low of
338.77.
    Weekly FX swap tenders, allowing the central bank to manage
forint liquidity in the banking system, have been an important
policy tool for the bank, which has held a dovish policy stance.
    The bank said in a study released on Thursday that interbank
market liquidity may fall markedly in the short term for various
reasons, even if it does not reduce the stock of its swaps.

    All markets have struggled this week, but stocks have been
hardest hit. Indexes fell 3% to 5% as the death toll from a
virus in China reached 170 on Thursday, forcing airlines to cut
flights and stores to close.
    Prague's index dropped to a seven-week low, down 1.4%
on the day. Budapest was at an eight-week low. In Prague,
Avast dropped over 7% to bring its losses for this week to
almost 22%.     
    Avast shares have dropped after media reports this week that
it had allegedly collected data on what many of its users did
online and sent it to its Jumpshot unit, which then offered to
sell the information to clients. Avast has denied the
allegations. On Thursday, it said it would be closing the unit.

    Central Europe's currencies were mixed, with the Czech crown
 edging up 0.1% to 25.206 to the euro and Poland's
zloty also up at 4.282.
    Czech markets were digesting the last central banker
comments ahead of the quiet period before a rate setting meeting
next week. The bank has been one of the few to keep chances of
an interest rate increase on the table, although a majority has
voted against a move at the last three sittings.
    Central bank Vice-Governor Tomas Nidetzky told Reuters on
Wednesday the most likely scenario was for stable rates.

    Markets are also not pricing in a change, and CSOB analysts
said with central bank comments done for now, then "the crown
will be driven by the mood on global markets that are mainly
under the influence of news from China."
    
                   CEE      SNAPSHO   AT               
                   MARKETS  T        1128              
                                     CET               
                            CURRENC                    
                            IES                        
                            Latest   Previou  Daily    Change
                                     s                 
                            bid      close    change   in 2020
 EURCZK  Czech     <EURCZK  25.2060  25.2415   +0.14%   +0.90%
 =       crown     =>                                  
 EURHUF  Hungary   <EURHUF  338.180  337.610  -0.17%   -2.08%
 =       forint    =>       0        0                 
 EURPLN  Polish    <EURPLN  4.2820   4.2859    +0.09%  -0.60%
 =       zloty     =>                                  
 EURRON  Romanian  <EURRON  4.7800   4.7795   -0.01%    +0.17%
 =       leu       =>                                  
 EURHRK  Croatian  <EURHRK  7.4410   7.4400   -0.01%    +0.06%
 =       kuna      =>                                  
 EURRSD  Serbian   <EURRSD  117.580  117.650   +0.06%  -0.01%
 =       dinar     =>       0        0                 
         Note:     calculated from            1800     
         daily                                CET      
         change                                        
                                                       
                            Latest   Previou  Daily    Change
                                     s                 
                                     close    change   in 2020
 .PX     Prague             1082.31  1097.59  -1.39%   -2.99%
                                     00                
 .BUX    Budapest           43347.3  43431.3  -0.19%   -5.94%
                            5        0                 
 .WIG20  Warsaw    <.WIG20  2087.68  2098.18  -0.50%   -2.90%
                   >                                   
 .BETI   Buchares           10016.0  10050.7  -0.34%    +0.39%
         t                  3        0                 
 .SBITO  Ljubljan  <.SBITO  967.78   963.68    +0.43%   +4.53%
 P       a         P>                                  
 .CRBEX  Zagreb    <.CRBEX  2028.92  2025.17   +0.19%   +0.57%
                   >                                   
 .BELEX  Belgrade  <.BELEX  804.92   805.99   -0.13%    +0.40%
 15                15>                                 
 .SOFIX  Sofia     <.SOFIX  575.69   576.51   -0.14%    +1.33%
                   >                                   
                                                       
                            Yield    Yield    Spread   Daily
                            (bid)    change   vs Bund  change
                                                       in
         Czech                                         spread
         Republic                                      
 CZ2YT=    2-year  <CZ2YT=  1.7680   0.0140    +242bp   +3bps
 RR                RR>                        s        
 CZ5YT=    5-year  <CZ5YT=  1.6300   0.0120    +224bp   +3bps
 RR                RR>                        s        
 CZ10YT            <CZ10YT  1.5760   0.0220    +197bp   +5bps
 =RR     10-year   =RR>                       s        
         Poland                                        
 PL2YT=    2-year  <PL2YT=  1.5030   -0.0140   +215bp   +0bps
 RR                RR>                        s        
 PL5YT=    5-year  <PL5YT=  1.8470   -0.0270   +246bp  -1bps
 RR                RR>                        s        
 PL10YT            <PL10YT  2.1980   -0.0300   +260bp   +0bps
 =RR     10-year   =RR>                       s        
                   FORWARD                             
                            3x6      6x9      9x12     3M
                                                       interba
                                                       nk
         Czech     <CZKFRA  2.19     2.18     2.14     2.17
         Rep       ><PRIBO                             
                   R=>                                 
         Hungary   <HUFFRA  0.34     0.45     0.53     0.23
                   ><BUBOR                             
                   =>                                  
         Poland    <PLNFRA  1.73     1.74     1.76     1.71
                   ><WIBOR                             
                   =>                                  
         Note:     are for ask                         
         FRA       prices                              
         quotes                                        
         ********************************************  
         ******************                            
                                                       
    
    

 (Reporting by Jason Hovet in Prague and Gergely Szakacs in
Budapest)
  
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