November 13, 2019 / 10:45 AM / a month ago

CEE MARKETS-Currencies fall as Trump's speech dampens trade deal hopes

    By Alan Charlish
    WARSAW, Nov 13 (Reuters) - Central Europe's main currencies
continued to soften on Wednesday, as a better-than-expected
reading on German investor sentiment was offset by U.S.
President Donald Trump's speech that dashed hopes of a concrete
trade deal with China.
    Trump on Tuesday said an initial trade deal with China could
happen "soon", but offered no new details on negotiations
despite rumours before the speech that he might announce a venue
and date for signing the deal.
    "Donald Trump poured a bucket of cold water on investors'
heads," PKO BP said in a note.
    At 0949 GMT, the Polish zloty was down 0.13%
against the euro at 4.2835. The Czech crown was down
0.16% at 25.57 while the Hungarian forint fell 0.09%
to 334.9.
    There was more positive news from Germany, a key trading
partner for central European economies, as a ZEW survey showed
on Tuesday that the mood among German investors improved more
than expected in November.
    ZEW said its monthly survey showed economic sentiment among
investors jumped to -2.1 from -22.8 in October.
    In Poland, bond yields fell across the curve in line with
euro zone peers as Trump's remarks cast a shadow over recent
optimism.
    Polish 2-year yields fell 2 basis points to
1.383% while 10-year yields fell 6 basis points to 2.097%.
    "In the case of long-term yields, I mean the 10-year
benchmark, I would expect further declines in yields below 2.10%
over the short term," said Adam Antoniak, senior economist at
Pekao.
    The Czech Republic auctioned 2027 and 2033 bonds on
Wednesday.
    "Relatively shallow amount offered showing the finance
ministry's 2019 financing needs have been mostly covered,"
Komercni Banka rates trader Dalimil Vyskovsky said in a client
note. 
    "As was the case in a slightly weaker-than-expected auction
two weeks ago, they are unlikely to sell anything that would be
too cheap compared to the market or their own thinking." 
     Yields on the bonds were bid up
1-5 basis points in early trading on Wednesday.
    Benchmark Czech 10-year yields fell one basis
point to 1.564%.
    Stocks fell across the region, with Budapest's main index
 shedding 0.53% and Warsaw's blue-chip WIG 20 index
 falling 0.84%.
    Polish energy group PGE fell 4.9% after its
guidance for weaker EBITDA in 2020 worried investors.
    
    
            CEE        SNAPSHOT   AT                         
            MARKETS              1049 CET            
                       CURRENCI                              
                       ES                            
                       Latest    Previous  Daily     Change
                       bid       close     change    in 2019
 Czech                  25.5700   25.5300    -0.16%    +0.54%
 crown                                               
 Hungary               334.9000  334.6000    -0.09%    -4.13%
 forint                                              
 Polish                  4.2835    4.2780    -0.13%    +0.14%
 zloty                                               
 Romanian                4.7645    4.7619    -0.05%    -2.32%
 leu                                                 
 Croatian                7.4500    7.4475    -0.03%    -0.54%
 kuna                                                
 Serbian               117.2900  117.4450    +0.13%    +0.86%
 dinar                                               
 Note:      calculated from                1800 CET          
 daily                                               
 change                                              
                                                             
                       Latest    Previous  Daily     Change
                                 close     change    in 2019
 Prague                 1081.56  1084.110    -0.24%    +9.63%
                                        0            
 Budapest              43260.15  43492.33    -0.53%   +10.53%
 Warsaw                 2229.98   2248.81    -0.84%    -2.05%
 Bucharest              9691.27   9692.81    -0.02%   +31.25%
 Ljubljana               877.17    875.84    +0.15%    +9.07%
 Zagreb                 1971.69   1971.08    +0.03%   +12.74%
 Belgrade   <.BELEX15    766.06    762.55    +0.46%    +0.57%
            >                                        
 Sofia                   558.04    558.24    -0.04%    -6.13%
                       BONDS                                 
                       Yield     Yield     Spread    Daily
                       (bid)     change    vs Bund   change
                                                     in
 Czech                                               spread
 Republic                                            
   2-year   <CZ2YT=RR    1.4330    0.0600   +207bps     +7bps
            >                                        
   5-year   <CZ5YT=RR    1.2830    0.0340   +185bps     +6bps
            >                                        
   10-year  <CZ10YT=R    1.5640   -0.0110   +185bps     +3bps
            R>                                       
 Poland                                                      
   2-year   <PL2YT=RR    1.3830   -0.0200   +202bps     -1bps
            >                                        
   5-year   <PL5YT=RR    1.7880   -0.0420   +235bps     -2bps
            >                                        
   10-year  <PL10YT=R    2.0970   -0.0590   +239bps     -1bps
            R>                                       
            FORWARD    RATE      AGREEMEN                    
                                 T                   
                       3x6       6x9       9x12      3M
                                                     interban
                                                     k
 Czech Rep          <      2.26      2.25      2.17      2.18
            PRIBOR=>                                 
 Hungary            <      0.27      0.30      0.34      0.19
            BUBOR=>                                  
 Poland             <      1.73      1.71      1.67      1.71
            WIBOR=>                                  
 Note: FRA  are for ask prices                               
 quotes                                              
 **************************************************          
 ************                                        
 
    
    
    
    
    
    

 (Reporting by Alan Charlish in Warsaw and Jason Hovet in
Prague; Editing by Rashmi Aich)
  
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