Reuters logo
CEE MARKETS-Stocks firm; market rates rise helps leu, worries government
October 2, 2017 / 2:39 PM / 2 months ago

CEE MARKETS-Stocks firm; market rates rise helps leu, worries government

    * Polish shares get help from FTSE Russell reclassification
    * Renewed dlr strength keep fx under pressure despite good
PMIs
    * Hungarian bonds lead yields rise, tracking euro zone
    * Crown hovers around 26/euro after robust PMI

 (Adds rise in interbank rates, PM criticism of central bank in
Romania)
    By Sandor Peto and Radu-Sorin Marinas
    BUDAPEST/BUCHAREST, Oct 2 (Reuters) - Central European
equities rose on Monday partly because index provider FTSE
Russell said late on Friday that it would promote Poland to a
developed market from its advanced emerging class from next
year.
    Warsaw stocks rose 0.3 percent by 1355 GMT.
    Budapest's main index gained 1 percent, after OTP
CEO Sandor Csanyi said the region's biggest independent lender
planned to buy at least five banks in the next two years.
. 
    Strong Czech, Hungarian and Polish manufacturing indices
(PMI) may have also provided some help to assets in the region. 
    But demand for the region's currencies was reduced by a
strengthening of the dollar, with Catalonia's independence vote
weighing on the euro.
    The leu still firmed 0.3 percent against the euro
to 4.586, setting a four week high.
    "It is getting an expected boost from higher interbank
rates," a Bucharest-based trader said.
    Romanian Prime Minister Mihai Tudose criticised the central
bank late on Friday for failing to curb a rise in interbank
interest rates, driven by inflation expectations. Electricity
and gas tariffs for households rose from Oct. 1.
    The bank set the three-month ROBOR interbank rate
even higher on Monday. The ask level, set at 1.71 percent, was
the highest since late 2014.    
    The zloty traded weaker by 0.1 percent, at 4.313, down 0.1
percent, near 6-1/2-month lows touched last week. 
    Poland reported a higher than expected PMI manufacturing
index of 53.7 for September, underpinning that economic growth
remains strong. But the zloty was unable to benefit from the
good figures.
    Hungary, which calculates its own index with different
methodology, reported an even higher figure, at 59.3.
    The forint also eased, staying near its weakest
levels against the euro since May. A new round of monetary
easing measures launched last month has been keeping it under
pressure.
    The measures pushed down Hungarian government debt yields to
record lows, but a rise in U.S. and euro zone debt yields
triggered profit-taking since last week.
    Hungary's yields rose further on Monday, with the 10-year
bond at 2.63 percent, up 5 basis points from Friday.  
    Elsewhere, the Czech Republic also reported a strong PMI
index at a higher-than-expected 56.6.
    The crown danced around the 26 psychological line against
the euro, near its strongest levels since the central bank (CNB)
removed a cap which had kept it weaker than 27. 
    Expectations that the CNB will continue to lift its interest
rates in November buoy the currency, but a huge amount of long
crown positions held by foreigners keeps a lid on the unit.
    
               CEE MARKETS  SNAPSH   AT  1555 CET         
                            OT                      
                            CURRENCIES                    
                            Latest  Previo  Daily   Change
                                    us              
                            bid     close   change  in
                                                    2017
 Czech crown                25.982  25.994   +0.05   3.95%
                                 0       5       %  
 Hungary                    311.75  311.41  -0.11%  -0.94%
 forint                         00      50          
 Polish zloty               4.3130  4.3096  -0.08%   2.11%
 Romanian leu               4.5860  4.5999   +0.30  -1.11%
                                                 %  
 Croatian                   7.4990  7.4925  -0.09%   0.75%
 kuna                                               
 Serbian                    119.00  119.20   +0.17   3.66%
 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                     1049.9  1045.1   +0.46   +13.9
                                 8       7       %      3%
 Budapest                   37657.  37290.   +0.98   +17.6
                                70      65       %      7%
 Warsaw                     2460.0  2453.4   +0.27   +26.2
                                 5       6       %      9%
 Bucharest                  7896.6  7877.9   +0.24   +11.4
                                 3       2       %      5%
 Ljubljana                  795.37  796.55  -0.15%   +10.8
                                                        4%
 Zagreb                     1807.5  1811.1  -0.20%  -9.39%
                                 3       2          
 Belgrade                   719.50  720.76  -0.17%   +0.30
                                                         %
 Sofia                      689.60  688.11   +0.22   +17.5
                                                 %      9%
                            BONDS                         
                            Yield   Yield   Spread  Daily
                            (bid)   change  vs      change
                                            Bund    in
 Czech                                              spread
 Republic                                           
   2-year                    0.281   0.085   +099b   +11bp
                                                ps       s
   5-year                    0.385   0.126   +066b   +14bp
                                                ps       s
   10-year                   1.323   0.116   +087b   +13bp
                                                ps       s
 Poland                                                   
   2-year                    1.755   0.003   +246b   +3bps
                                                ps  
   5-year                    2.691  -0.011   +297b   +0bps
                                                ps  
   10-year                   3.367  -0.009   +292b   +0bps
                                                ps  
               FORWARD      RATE    AGREEMENT             
                            3x6     6x9     9x12    3M
                                                    interb
                                                    ank
 Czech Rep             <PR    0.74    0.87    1.02       0
               IBOR=>                               
 Hungary               <BU    0.07    0.11   0.145    0.03
               BOR=>                                
 Poland                <WI   1.765   1.815   1.878    1.73
               BOR=>                                
 Note: FRA     are for ask                                
 quotes        prices                               
 *********************************************************
 *****
    

 (Additional reporting by Warsaw bureau; Editing by Catherine
Evans)
  
 
 

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below