July 24, 2020 / 9:32 AM / in 21 days

CEE MARKETS-Central European stocks track global shares down on U.S.-China tensions

    By Luiza Ilie
    BUCHAREST, July 24 (Reuters) - Central European stocks
tracked global markets lower on Friday as tensions between the
United States and China escalated, denting asset gains in the
region after a landmark European Union economic deal.
    Most currencies in the region also weakened.
    China ordered the United States to close its consulate in
the city of Chengdu on Friday, in retaliation to a U.S. demand
this week that it close its Houston consulate.
    By 0915 GMT, Prague's bluechip index was down 1.5% on
the day, Warsaw's fell 1.0%, Budapest's 0.9% and
Bucharest's 0.3%. 
    Stocks and currencies in the region had been lifted earlier
this week by a 750-billion-euro coronavirus recovery package
that would see healthy portions sent to Poland, Hungary and
Romania.
    On Friday, market volatility erased some of the gains. The
forint was down 0.2% on the day at 347.4000, still
well off a record low of 369.54 it hit in April at the peak of
the pandemic.
    The National Bank of Hungary cut its base rate for the
second consecutive month earlier this week to 0.6% as expected,
with Deputy Governor Barnabas Virag saying the current level
would maintain financial stability in a sustainable way.
    "The Hungarian central bank has no exchange rate target, but
nonetheless it has to pay attention to the forint's moves," said
David Nemeth, an analyst at KH Bank in Budapest in a note. 
    "The biggest threat to the forint is a potential global
selloff on markets. But for the time being sentiment is
relatively stable on markets." 
    Elsewhere in the region, the Polish zloty was down
0.2% and the Romanian leu was flat. The Czech crown
 was 0.1% weaker. 
    Czech business confidence data released on Friday showed a
one-month jump of 10.9 points to 84.7, the highest since
March.. 
    "Overall the confidence survey gives hope that results of
retail sales and industrial output may bring encouraging
results," Komercni Banka economist Jana Steckerova said in a
note. "If there is no second wave of the pandemic, the Czech
economy should have the worst behind it."         
           CEE      SNAPSHO   AT                      
           MARKETS  T        1115              
                             CET               
                    CURRENC                           
                    IES                        
                    Latest   Previou  Daily    Change
                             s                 
                    bid      close    change   in 2020
 Czech     <EURCZK  26.2970  26.2700   -0.10%   -3.29%
 crown     =>                                  
 Hungary   <EURHUF  347.530  346.670   -0.25%   -4.71%
 forint    =>             0        0           
 Polish    <EURPLN   4.4108   4.4007   -0.23%   -3.50%
 zloty     =>                                  
 Romanian  <EURRON   4.8340   4.8330   -0.02%   -0.95%
 leu       =>                                  
 Croatian  <EURHRK   7.5150   7.5213   +0.08%   -0.93%
 kuna      =>                                  
 Serbian   <EURRSD  117.590  117.650   +0.05%   -0.02%
 dinar     =>             0        0           
 Note:     calculated from            1800            
 daily                                CET      
 change                                        
                                                      
                    Latest   Previou  Daily    Change
                             s                 
                             close    change   in 2020
 Prague              920.25  934.070   -1.48%  -17.51%
                                   0           
 Budapest           35240.0  35571.7   -0.93%  -23.53%
                          1        2           
 Warsaw    <.WIG20  1802.07  1820.25   -1.00%  -16.19%
           >                                   
 Buchares           8544.76  8572.01   -0.32%  -14.36%
 t                                             
 Ljubljan  <.SBITO   850.99   853.03   -0.24%   -8.09%
 a         P>                                  
 Zagreb    <.CRBEX  1597.02  1610.04   -0.81%  -20.84%
           >                                   
 Belgrade  <.BELEX   649.22   649.16   +0.01%  -19.02%
           15>                                 
 Sofia     <.SOFIX   440.06   440.63   -0.13%  -22.54%
           >                                   
                                                      
                    Yield    Yield    Spread   Daily
                    (bid)    change   vs Bund  change
                                               in
 Czech                                         spread
 Republic                                      
   2-year  <CZ2YT=   0.1080   0.0730   +077bp    +6bps
           RR>                              s  
   5-year  <CZ5YT=   0.4180  -0.0420   +107bp    -6bps
           RR>                              s  
           <CZ10YT   0.8420   0.0090   +130bp    -1bps
 10-year   =RR>                             s  
 Poland                                               
   2-year  <PL2YT=   0.1250  -0.0010   +079bp    -1bps
           RR>                              s  
   5-year  <PL5YT=   0.7500  -0.0280   +141bp    -5bps
           RR>                              s  
           <PL10YT   1.3540   0.0040   +181bp    -2bps
 10-year   =RR>                             s  
           FORWARD                                    
                    3x6      6x9      9x12     3M
                                               interba
                                               nk
 Czech     <CZKFRA     0.30     0.31     0.34     0.34
 Rep       ><PRIBO                             
           R=>                                 
 Hungary   <HUFFRA     0.60     0.60     0.59     0.60
           ><BUBOR                             
           =>                                  
 Poland    <PLNFRA     0.19     0.20     0.22     0.25
           ><WIBOR                             
           =>                                  
 Note:     are for ask                                
 FRA       prices                              
 quotes                                        
 ********************************************         
 ******************                            
 
        

 (Reporting by Luiza Ilie in Bucharest, Krisztina Than in
Budapest and Jan Lopatka in Prague; Editing by Emelia Matarise)
  
 
 
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