June 19, 2020 / 9:53 AM / 19 days ago

CEE MARKETS-Currencies stable, stocks up as markets eye EU talks

    By Anita Komuves
    BUDAPEST, June 19 (Reuters) - Central European currencies
were little changed before central bank meetings in the Czech
Republic and Hungary next week and a meeting of European Union
leaders on a 750 billion-euro stimulus programme later on
Friday.     
    The National Bank of Hungary is expected to leave interest
rates unchanged next Tuesday, according to a Reuters poll of
analysts.
    "The statement after the meeting could give markets an
indication about whether a change in leadership has any effect
on monetary policy," CIB Bank said in a note. 
    Former Deputy Governor Nagy unexpectedly resigned from the
NBH last month. The parliament held a confirmation hearing on
June 9 for Barnabas Virag, the nominee for deputy governor.
    Expectations of a rate cut have fallen in Prague. The Czech
National Bank has cut by 200 basis points since March to put the
base rate at 0.25%. Dealers noted strong demand at
a t-bill auction on Thursday.
    "Together with the short end (of the curve) dropping by a
couple of points, this may suggest that some market participants
are still expecting a cut sooner or later in 2020," Komercni
Banka trader Marek Lesko said in a note.
    The Czech central bank meets next Wednesday.
    The Polish central bank left rates unchanged on Wednesday
after cutting rates to near zero in May.
    Markets are also paying attention to negotiations of EU
leaders on Friday, who hope to agree an unprecedented 750
billion-euro stimulus programme.
    "Any signals of agreement would be today's source of better
moods and an argument for a slight strengthening of the zloty,"
Bank Millennium said, pointing out that the original proposal. 
    Hungary is likely to support the EU's rescue plan, Prime
Minister Viktor Orban said on Friday.
     Hungary, Slovakia, Poland and the Czech Republic last week
edged towards backing the EU plan but said it should not favour
larger, richer states or hurt smaller ones that had managed the
outbreak well.
    Stock markets in the region gained, with Prague's equities
 up 0.75% on the day and leading gains in the region.
   
    
                   CEE      SNAPSHO   AT                      
                   MARKETS  T        1106              
                                     CET               
                                                              
                   CURRENC                                    
                   IES                                 
                            Latest   Previou  Daily    Change
                                     s                 
                            bid      close    change   in 2020
 EURCZK  Czech     <EURCZK  26.6780  26.6950   +0.06%   -4.67%
 =       crown     =>                                  
 EURHUF  Hungary   <EURHUF  346.000  345.935   -0.02%   -4.29%
 =       forint    =>             0        0           
 EURPLN  Polish    <EURPLN   4.4570   4.4536   -0.08%   -4.50%
 =       zloty     =>                                  
 EURRON  Romanian  <EURRON   4.8420   4.8407   -0.03%   -1.11%
 =       leu       =>                                  
 EURHRK  Croatian  <EURHRK   7.5650   7.5453   -0.26%   -1.58%
 =       kuna      =>                                  
 EURRSD  Serbian   <EURRSD  117.550  117.550   +0.00%   +0.02%
 =       dinar     =>             0        0           
         Note:     calculated from            1800            
         daily                                CET      
         change                                        
                                                              
                   STOCKS                                     
                            Latest   Previou  Daily    Change
                                     s                 
                                     close    change   in 2020
 .PX     Prague              935.23  928.280   +0.75%  -16.17%
                                           0           
 .BUX    Budapest           37743.1  37487.4   +0.68%  -18.10%
                                  3        6           
 .WIG20  Warsaw    <.WIG20  1799.85  1795.86   +0.22%  -16.29%
                   >                                   
 .BETI   Buchares           8739.50  8707.90   +0.36%  -12.41%
         t                                             
 .SBITO  Ljubljan  <.SBITO   851.73   855.84   -0.48%   -8.01%
 P       a         P>                                  
 .CRBEX  Zagreb    <.CRBEX  1639.45  1636.88   +0.16%  -18.74%
                   >                                   
 .BELEX  Belgrade  <.BELEX   675.52   674.13   +0.21%  -15.74%
 15                15>                                 
 .SOFIX  Sofia     <.SOFIX   459.04   459.09   -0.01%  -19.20%
                   >                                   
                                                              
                   BONDS                                      
                            Yield    Yield    Spread   Daily
                            (bid)    change   vs Bund  change
                                                       in
         Czech                                         spread
         Republic                                      
 CZ2YT=    2-year  <CZ2YT=   0.1330   0.0150   +080bp    +2bps
 RR                RR>                              s  
 CZ5YT=    5-year  <CZ5YT=   0.3690  -0.1510   +102bp   -15bps
 RR                RR>                              s  
 CZ10YT            <CZ10YT   0.8960   0.0140   +131bp    +2bps
 =RR     10-year   =RR>                             s  
         Poland                                               
 PL2YT=    2-year  <PL2YT=   0.2460  -0.0230   +091bp    -2bps
 RR                RR>                              s  
 PL5YT=    5-year  <PL5YT=   0.8400  -0.0180   +149bp    -1bps
 RR                RR>                              s  
 PL10YT            <PL10YT   1.4280  -0.0030   +184bp    +0bps
 =RR     10-year   =RR>                             s  
                                                              
                   FRA                                        
                            3x6      6x9      9x12     3M
                                                       interba
                                                       nk
         Czech     <CZKFRA     0.31     0.35     0.37     0.34
         Rep       ><PRIBO                             
                   R=>                                 
         Hungary   <HUFFRA     0.79     0.73     0.68     0.89
                   ><BUBOR                             
                   =>                                  
         Poland    <PLNFRA     0.24     0.25     0.27     0.27
                   ><WIBOR                             
                   =>                                  
         Note: FRA quotes are for                             
         ask prices                                    
         ********************************************         
         ******************                            
                                                              
                                                              
 
 (Additional reporting by Jason Hovet in Prague and Alan
Charlish in Warsaw; editing by Larry King)
  
 
 
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