September 5, 2019 / 10:19 AM / 3 months ago

CEE MARKETS-Stocks firm after U.S.-China trade talks confirmed

    BUCHAREST, Sept 5 (Reuters) - Central European stocks rose
in tandem with other European shares on Thursday, bolstered by
scheduled U.S.-China trade talks and Britain's parliamentary
vote against a no-deal exit from the European Union.
    Currencies held steady.     
    By 0930 GMT, Prague's blue-chip index led gains with a
0.5% advance on the day. Warsaw's index was 0.4% higher.
    China and the United States on Thursday agreed to hold
high-level trade talks in early October in Washington, amid
fears that an escalating trade war could trigger a global
economic recession.
    Central European currencies, which had rebounded on
Wednesday were mixed in early trade, with investors still wary
of further turbulence. 
    The Polish zloty and Romanian leu were
each down 0.1% against the euro. The Hungarian forint
and Czech crown were flat at 329.5 and 25.8490 per
euro, respectively, with the crown ignoring stronger-than-
expected retails sales.  
    "Sentiment is favourable on (global) share markets,"
brokerage Equilor said in a note. "Investors can take a breath,
as several risks have decreased on the market but we think
hectic movements are not over yet."
    "The forint's exchange rate, after a quick (positive)
correction, again started to ease and in the coming days it
could move between 329 and 331 to the euro. It could leave this
range towards weakening further if international sentiment
worsens."
    However, analysts expect central Europe's main currencies to
firm against the euro in the next 12 months, a Reuters poll
found, depending on calmer conditions in global markets and
delivery of expected monetary easing in the euro zone and the
United States.
    Expected loose monetary policy by the world's largest
central banks has eased pressure to act on policymakers in
central Europe, where consumption-driven economic growth has
stoked inflation in certain countries.
    Czech retail sales data on Thursday and Hungarian retail
sales data on Wednesday were both strong.
    In Romania, a debt tender for Sept. 2031 bonds later on
Thursday was expected to show "the extent to which Romanian
government bonds are still in vogue for international
investors," ING said in a note.
    
            CEE       SNAPSHO   AT                       
            MARKETS   T        1158              
                               CET               
                      CURRENC                            
                      IES                        
                      Latest   Previou  Daily    Change
                               s                 
                      bid      close    change   in 2019
 Czech      <EURCZK=  25.8490  25.8530   +0.02%    -0.55%
 crown      >                                    
 Hungary    <EURHUF=  329.500  329.450   -0.02%    -2.55%
 forint     >               0        0           
 Polish     <EURPLN=   4.3390   4.3382   -0.02%    -1.14%
 zloty      >                                    
 Romanian   <EURRON=   4.7303   4.7266   -0.08%    -1.61%
 leu        >                                    
 Croatian   <EURHRK=   7.4010   7.4043   +0.04%    +0.12%
 kuna       >                                    
 Serbian    <EURRSD=  117.390  117.470   +0.07%    +0.78%
 dinar      >               0        0           
 Note:      calculated from             1800             
 daily                                  CET      
 change                                          
                                                         
                      Latest   Previou  Daily    Change
                               s                 
                               close    change   in 2019
 Prague               1031.50  1028.39   +0.30%    +4.56%
                                    00           
 Budapest             39744.8  39753.4   -0.02%    +1.55%
                            5        9           
 Warsaw               2111.14  2102.73   +0.40%    -7.27%
 Bucharest            9281.50  9262.37   +0.21%   +25.70%
 Ljubljana  <.SBITOP   845.84   850.33   -0.53%    +5.17%
            >                                    
 Zagreb               1866.58  1869.35   -0.15%    +6.73%
 Belgrade   <.BELEX1   745.62   747.12   -0.20%    -2.11%
            5>                                   
 Sofia                 574.75   573.23   +0.27%    -3.32%
                      BONDS                              
                      Yield    Yield    Spread   Daily
                      (bid)    change   vs Bund  change
                                                 in
 Czech                                           spread
 Republic                                        
   2-year   <CZ2YT=R   1.1720   0.0420   +205bp     +2bps
            R>                                s  
   5-year   <CZ5YT=R   0.9130   0.0480   +180bp     +1bps
            R>                                s  
   10-year  <CZ10YT=   1.0900   0.0250   +171bp     -3bps
            RR>                               s  
 Poland                                                  
   2-year   <PL2YT=R   1.5590  -0.0170   +243bp     -4bps
            R>                                s  
   5-year   <PL5YT=R   1.7780   0.0470   +266bp     +1bps
            R>                                s  
   10-year  <PL10YT=   1.9570   0.0680   +258bp     +1bps
            RR>                               s  
            FORWARD   RATE     AGREEME                   
                               NT                
                      3x6      6x9      9x12     3M
                                                 interban
                                                 k
 Czech Rep               2.10     1.94     1.77      2.14
            <PRIBOR=                             
            >                                    
 Hungary                 0.32     0.33     0.35      0.25
                                                 
 Poland                  1.74     1.69     1.65      1.72
                                                 
 Note: FRA  are for ask                                  
 quotes     prices                               
 **********************************************          
 ****************                                
 
 (Reporting by Luiza Ilie in Bucharest, Jason Hovet in Prague,
Krisztina Than in Budapest and Alan Charlish in Warsaw; Editing
by Susan Fenton)
  
 
 
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