September 19, 2019 / 8:57 AM / a month ago

CEE MARKETS- Currencies steady after Fed move, stocks mixed

    BUCHAREST, Sept 19 (Reuters) - Central European currencies
edged higher against the euro in early trade on Thursday after
the U.S. Federal Reserve cut interest rates but set a higher bar
for further reductions, while stocks across the region were
mixed.
    Monetary policy loosening by the world's largest central
banks has so far eased pressure to act on policymakers in
central Europe, where consumption-driven economic growth has
mostly held up in the face of a euro zone slowdown and concerns
over Britain's exit from the European Union.
    Policy in central Europe remains in a wait-and-see mode.
    By 0830 GMT, the Czech crown, Hungarian forint
 and Romanian leu were each 0.1% higher
against the euro on the day, while the Polish zloty
was flat.
    "The U.S. Fed meeting yesterday produced the widely expected
result bringing a 25 basis point rate cut and dovish wording,"
Raiffeisen Bank said in a research note.
    "Still, a small relief rally in CEE local bond markets may
be possible in the coming days due to relatively cautious
positioning of the markets ahead of the Fed meeting."
    Bond yields were mixed on Thursday.
    Polish industrial output fell by 1.3% in August while
analysts had expected it to rise by 1.7%.
    "The data is clearly weaker than expected," said Piotr
Bielski, Santander Bank Polska head of economic analysis.
    "I think that one can suspect that this slowdown in Western
Europe, to which we have been resistant for a long time, has a
mark on Polish industry. This is a signal that we are not
completely immune to the global slowdown."
    Warsaw's blue chip index was down 0.6% on the day,
while Hungary's fell 0.5%. In Prague and Bucharest,
stocks were up 0.4% and 0.1%, respectively.
    
            CEE       SNAPSHO   AT                      
            MARKETS   T        1027              
                               CET               
                      CURRENC                           
                      IES                        
                      Latest   Previou  Daily    Change
                               s                 
                      bid      close    change   in 2019
 Czech      <EURCZK=  25.8750  25.9040   +0.11%   -0.65%
 crown      >                                    
 Hungary    <EURHUF=  332.730  332.940   +0.06%   -3.50%
 forint     >               0        0           
 Polish     <EURPLN=   4.3431   4.3422   -0.02%   -1.23%
 zloty      >                                    
 Romanian   <EURRON=   4.7395   4.7418   +0.05%   -1.80%
 leu        >                                    
 Croatian   <EURHRK=   7.3980   7.3975   -0.01%   +0.16%
 kuna       >                                    
 Serbian    <EURRSD=  117.500  117.615   +0.10%   +0.68%
 dinar      >               0        0           
 Note:      calculated from             1800            
 daily                                  CET      
 change                                          
                                                        
                      Latest   Previou  Daily    Change
                               s                 
                               close    change   in 2019
 Prague               1053.46  1050.02   +0.33%   +6.78%
                                    00           
 Budapest             40726.1  40930.2   -0.50%   +4.06%
                            3        4           
 Warsaw               2190.50  2205.02   -0.66%   -3.78%
 Bucharest            9323.76  9313.44   +0.11%   +26.28
                                                       %
 Ljubljana  <.SBITOP   857.74   859.27   -0.18%   +6.65%
            >                                    
 Zagreb               1896.22  1893.77   +0.13%   +8.43%
 Belgrade   <.BELEX1   760.59   759.43   +0.15%   -0.14%
            5>                                   
 Sofia                 580.60   580.65   -0.01%   -2.33%
                      BONDS                             
                      Yield    Yield    Spread   Daily
                      (bid)    change   vs Bund  change
                                                 in
 Czech                                           spread
 Republic                                        
   2-year   <CZ2YT=R   1.2870  -0.0930   +199bp   -10bps
            R>                                s  
   5-year   <CZ5YT=R   1.1020  -0.0840   +183bp   -10bps
            R>                                s  
   10-year  <CZ10YT=   1.3930  -0.0170   +189bp    -4bps
            RR>                               s  
 Poland                                                 
   2-year   <PL2YT=R   1.4960   0.0160   +220bp    +1bps
            R>                                s  
   5-year   <PL5YT=R   1.8400   0.0190   +257bp    +1bps
            R>                                s  
   10-year  <PL10YT=   2.1130   0.0430   +261bp    +3bps
            RR>                               s  
            FORWARD   RATE     AGREEME                  
                               NT                
                      3x6      6x9      9x12     3M
                                                 interba
                                                 nk
 Czech Rep               2.16     2.09     1.99     2.14
            <PRIBOR=                             
            >                                    
 Hungary                 0.27     0.33     0.37     0.21
                                                 
 Poland                  1.73     1.73     1.70     1.72
                                                 
 Note: FRA  are for ask                                 
 quotes     prices                               
 **********************************************         
 ****************                                
 
 (Reporting by Luiza Ilie in Bucharest, Jason Hovet in Prague
and Anna Koper in Warsaw; Editing by Shri Navaratnam)
  
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