June 16, 2020 / 9:14 AM / a month ago

CEE MARKETS-Stock markets firm, Polish central bank seen holding rates

    BUCHAREST, June 16 (Reuters) - The Polish zloty edged higher
against the euro on Tuesday ahead of a central bank meeting
expected to leave interest rates untouched, while central
European stocks firmed after the U.S. Federal Reserve launched a
corporate bond buying programme.
    By 0850 GMT, the zloty traded 0.2% higher versus
the euro at 4.4260.
    Poland unexpectedly cut interest rates to almost zero in May
to support an economy affected by the COVID-19 pandemic.
Analysts were expecting policymakers to keep the benchmark
interest rate at 0.1% on Tuesday.   
    "We cannot see any reason why the central bank would need to
urgently do more, unless of course, there were to be a second
shock down the road," Commerzbank said in a daily note.
    "Now Poland has a seriously negative real interest rate and
we expect the zloty to underperform peers over the coming year."
    Elsewhere in the region, the Czech crown was up
0.6%. On Monday, central bank governor Jiri Rusnok said cutting
interest rates further from already low levels could undermine
the income and stability of the financial sector.
    Central banks across the region have cut their benchmark
rates and enforced further measures to shore up economic
activity damaged by restrictions and closures aimed at curbing
the coronavirus outbreak.
    The Hungarian forint was up 0.6% versus the euro
while the Romanian leu was flat.
    Stocks recovered earlier losses driven by a resurgence in
coronavirus cases and concerns over a sluggish economic recovery
from the pandemic, with Warsaw's bluechip up 2.6% on
the day. Prague's rose 2.3%, Budapest's gained 1.8%
and Bucharest's advanced 1.3%. 
    
           CEE      SNAPSHO   AT                      
           MARKETS  T        1050              
                             CET               
                    CURRENC                           
                    IES                        
                    Latest   Previou  Daily    Change
                             s                 
                    bid      close    change   in 2020
 Czech     <EURCZK  26.5770  26.7450   +0.63%   -4.31%
 crown     =>                                  
 Hungary   <EURHUF  345.800  347.770   +0.57%   -4.24%
 forint    =>             0        0           
 Polish    <EURPLN   4.4260   4.4343   +0.19%   -3.83%
 zloty     =>                                  
 Romanian  <EURRON   4.8350   4.8330   -0.04%   -0.97%
 leu       =>                                  
 Croatian  <EURHRK   7.5530   7.5585   +0.07%   -1.42%
 kuna      =>                                  
 Serbian   <EURRSD  117.530  117.590   +0.05%   +0.03%
 dinar     =>             0        0           
 Note:     calculated from            1800            
 daily                                CET      
 change                                        
                                                      
                    Latest   Previou  Daily    Change
                             s                 
                             close    change   in 2020
 Prague              944.53  923.200   +2.31%  -15.34%
                                   0           
 Budapest           37991.6  37340.8   +1.74%  -17.56%
                          1        4           
 Warsaw    <.WIG20  1786.59  1741.47   +2.59%  -16.91%
           >                                   
 Buchares           8641.57  8532.77   +1.28%  -13.39%
 t                                             
 Ljubljan  <.SBITO   861.19   859.47   +0.20%   -6.98%
 a         P>                                  
 Zagreb    <.CRBEX  1648.33  1644.27   +0.25%  -18.30%
           >                                   
 Belgrade  <.BELEX   676.66   677.39   -0.11%  -15.60%
           15>                                 
 Sofia     <.SOFIX   460.07   458.81   +0.27%  -19.02%
           >                                   
                                                      
                    Yield    Yield    Spread   Daily
                    (bid)    change   vs Bund  change
                                               in
 Czech                                         spread
 Republic                                      
   2-year  <CZ2YT=   0.1490   0.0000   +079bp    -1bps
           RR>                              s  
   5-year  <CZ5YT=   0.4560   0.0350   +109bp    +2bps
           RR>                              s  
           <CZ10YT   0.9360   0.0520   +136bp    +4bps
 10-year   =RR>                             s  
 Poland                                               
   2-year  <PL2YT=   0.2340  -0.0030   +088bp    -1bps
           RR>                              s  
   5-year  <PL5YT=   0.7910  -0.0560   +143bp    -7bps
           RR>                              s  
           <PL10YT   1.3560   0.0050   +178bp    -1bps
 10-year   =RR>                             s  
           FORWARD                                    
                    3x6      6x9      9x12     3M
                                               interba
                                               nk
 Czech     <CZKFRA     0.30     0.34     0.39     0.34
 Rep       ><PRIBO                             
           R=>                                 
 Hungary   <HUFFRA     0.78     0.70     0.66     0.90
           ><BUBOR                             
           =>                                  
 Poland    <PLNFRA     0.24     0.24     0.26     0.27
           ><WIBOR                             
           =>                                  
 Note:     are for ask                                
 FRA       prices                              
 quotes                                        
 ********************************************         
 ******************                            
 
 (Reporting by Luiza Ilie in Bucharest, Anita Komuves in
Budapest and Alan Charlish in Warsaw; Editing by Krishna Chandra
Eluri)
  
 
 
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