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CEE MARKETS-Markets drop on N. Korea, Czech cbanker's comments buoy crown
August 29, 2017 / 3:13 PM / 3 months ago

CEE MARKETS-Markets drop on N. Korea, Czech cbanker's comments buoy crown

    * Czech cbank vice-governor may vote for hike in Sept
    * Poland, Hungary lead currency, stock retreat
    * Hungarian central bank dovish
    * PMI data could fuel optimism

 (Recasts with comments from Czech central banker and EU
criticism of Poland)
    By Sandor Peto and Bartosz Chmielewski
    BUDAPEST/WARSAW, Aug 29 (Reuters) - Central European stocks
and currencies mostly fell on Tuesday, led by Warsaw and
Budapest on widespread risk aversion after a missile test by
North Korea revived concerns over its tense relations with the
United States.
    The Czech crown outperformed, erasing its losses
to trade flat after central bank (CNB) Vice-Governor Mojmir
Hampl said it might lift interest rates again.  
    Regional assets have been buoyed this month by data showing
robust economic growth.
    Budapest's main stock index fell 1.4 percent by 1443
GMT on Tuesday, having hit record highs the previous day.
Warsaw's bluechip index eased 1.3 percent, off 28-month
highs, and Prague shed 1.4 percent.
    The zloty weakened half a percent against the euro
and the forint fell 0.4 percent.
    Market participants said PMI manufacturing activity data due
in the region's main countries on Friday could help its assets
again.
    The forint is under additional pressure after the Hungarian
central bank flagged further monetary easing on Thursday in
comments to Reuters.
    This is in contrast with the CNB's stance, which early this
month implemented the European Union's first rate hike in more
than five years.
    Hampl told Reuters that he might vote for a new rate hike
already at the bank's Sept 27 board meeting, partly due to
concerns over a heated mortgage lending market, though continued
crown strength might reduce the need for an increase.
    After his comments, the crown bounced back from two-week
lows against the euro and traded steady at 26.11.
    Polish rate-setter Kamil Zubelewski said Poland should nudge
interest rates up now to avoid spikes in inflation, but he is in
a minority on the Monetary Policy Council.
        
               CEE MARKETS  SNAPSH   AT  1643 CET         
                            OT                      
                            CURRENCIES                    
                            Latest  Previo  Daily   Change
                                    us              
                            bid     close   change  in
                                                    2017
 Czech crown                26.110  26.101  -0.03%   3.44%
                                 0       0          
 Hungary                    305.49  304.29  -0.39%   1.09%
 forint                         00      00          
 Polish zloty               4.2680  4.2468  -0.50%   3.18%
 Romanian leu               4.5960  4.5980   +0.04  -1.33%
                                                 %  
 Croatian                   7.4150  7.4143  -0.01%   1.89%
 kuna                                               
 Serbian                    119.07  119.10   +0.03   3.59%
 dinar                          00      00       %  
 Note: daily   calculated   previo  close   1800          
 change        from         us      at      CET     
                            STOCKS                        
                            Latest  Previo  Daily   Change
                                    us              
                                    close   change  in
                                                    2017
 Prague                     1021.3  1035.9  -1.41%   +10.8
                                 0       1              2%
 Budapest                   37551.  38097.  -1.43%   +17.3
                                29      59              4%
 Warsaw                     2497.7  2531.3  -1.33%   +28.2
                                 3       1              3%
 Bucharest                  8290.9  8363.1  -0.86%   +17.0
                                 9       4              2%
 Ljubljana                  819.61  824.53  -0.60%   +14.2
                                                        2%
 Zagreb                     1895.6  1899.5  -0.20%  -4.97%
                                 9       0          
 Belgrade                   728.49  724.75   +0.52   +1.55
                                                 %       %
 Sofia                      711.13  713.94  -0.39%   +21.2
                                                        6%
                            BONDS                         
                            Yield   Yield   Spread  Daily
                            (bid)   change  vs      change
                                            Bund    in
 Czech                                              spread
 Republic                                           
   2-year                   -0.027  -0.011   +071b   -2bps
                                                ps  
   5-year                    0.043   0.024   +040b   +5bps
                                                ps  
   10-year                   0.905   0.021   +057b   +6bps
                                                ps  
 Poland                                                   
   2-year                    1.678  -0.044   +242b   -6bps
                                                ps  
   5-year                    2.592   -0.03   +295b   -1bps
                                                ps  
   10-year                   3.272  -0.006   +293b   +3bps
                                                ps  
               FORWARD      RATE    AGREEMENT             
                            3x6     6x9     9x12    3M
                                                    interb
                                                    ank
 Czech Rep             <PR     0.6    0.69    0.79       0
               IBOR=>                               
 Hungary               <BU    0.19    0.23   0.285    0.15
               BOR=>                                
 Poland                <WI    1.78    1.79   1.835    1.73
               BOR=>                                
 Note: FRA     are for ask                                
 quotes        prices                               
 *********************************************************
 *****
 
    
     
    
     
    
    

 (Additional reporting by Luiza Ilie in Bucharest/Bartosz
Chmielewski in Warsaw; Editing by Richard Balmforth and John
Stonestreet)
  
 
 

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