July 15, 2020 / 9:59 AM / a month ago

CEE MARKETS-Vaccine hopes help stocks and currencies

    By Alan Charlish
    WARSAW, July 15 (Reuters) - Central European stocks rose and
some currencies firmed on Wednesday, as hopes for a potential
COVID-19 vaccine outweighed concerns over increased U.S.-China
tensions.
    The experimental vaccine from U.S. firm Moderna Inc
showed promise in an ongoing early-stage study, giving global
investor sentiment a boost.
    "News came from the United States that there were some good
tests with a vaccine... the reaction on the stock market in
Asia, in the futures, in the FX was quite clear and now the
investors are quite upbeat on that," said Peter Virovacz, senior
economist at ING in Hungary.  
    "This means there is some light at the end of the tunnel so
that is the main reason for the strengthening of the
currencies."
    At 0914 GMT the Hungarian forint was 0.44%
stronger against the euro at 353.90 and the Czech crown
 was 0.23% stronger at 26.63. 
    The Polish zloty was little changed at 4.4738
after having firmed slightly earlier in the session and the
Romanian leu was flat at 4.8440
    Stocks were higher across the board, tracking global peers
on hopes of a vaccine. Poland's WIG 20 index was the
biggest gainer, rising 0.95%. 
    The top performer was CD Projekt which rose over 6%
after chief executive Adam Kicinski told Parkiet daily he was
not concerned about rival Ubisoft launching "Assasin's
Creed Valhalla" two days before the planned release of the
company's flagship "Cyberpunk 2077" game.
    "I think this a rebound from the over-reacted sell-off
recently," said a Warsaw-based equity trader, adding that the
Parkiet article was behind CD Projekt's gains.
    The Czech Finance Ministry will hold a rare auction of
euro-denominated bonds for the domestic market, offering up to
300 million euros of new 7-year zero-coupon paper.        
    "Since otherwise comparable papers of regional peers are
traded with negative yields, it is entirely possible MinFin
could borrow in EUR at rates close to or below zero," Komercni
Banka trader Marek Lesko said in a client note.   
    Czech yields have dropped sharply since a spike at the start
of the coronavirus pandemic in March. The yield on 7-year
crown-denominated bonds was bid at 0.75% on Wednesday
morning, down more than 1 percentage point since hitting its
peak in March.
    Benchmark Polish ten-year yields were down 1
basis point at 1.357.
    "In the coming days on the domestic debt market we can
expect a continuation of the sideways trend and low volatility,"
PKO BP analysts wrote in a note.
    
                   CEE      SNAPSHO   AT                      
                   MARKETS  T        1114              
                                     CET               
                                                              
                   CURRENC                                    
                   IES                                 
                            Latest   Previou  Daily    Change
                                     s                 
                            bid      close    change   in 2020
 EURCZK  Czech     <EURCZK  26.6300  26.6910   +0.23%   -4.50%
 =       crown     =>                                  
 EURHUF  Hungary   <EURHUF  353.900  355.445   +0.44%   -6.43%
 =       forint    =>             0        0           
 EURPLN  Polish    <EURPLN   4.4738   4.4735   -0.01%   -4.86%
 =       zloty     =>                                  
 EURRON  Romanian  <EURRON   4.8440   4.8435   -0.01%   -1.15%
 =       leu       =>                                  
 EURHRK  Croatian  <EURHRK   7.5325   7.5303   -0.03%   -1.16%
 =       kuna      =>                                  
 EURRSD  Serbian   <EURRSD  117.530  117.585   +0.05%   +0.03%
 =       dinar     =>             0        0           
         Note:     calculated from            1800            
         daily                                CET      
         change                                        
                                                              
                   STOCKS                                     
                            Latest   Previou  Daily    Change
                                     s                 
                                     close    change   in 2020
 .PX     Prague              943.16  937.840   +0.57%  -15.46%
                                           0           
 .BUX    Budapest           35126.8  35091.7   +0.10%  -23.77%
                                  9        2           
 .WIG20  Warsaw    <.WIG20  1788.46  1771.70   +0.95%  -16.82%
                   >                                   
 .BETI   Buchares           8465.31  8416.87   +0.58%  -15.15%
         t                                             
 .SBITO  Ljubljan  <.SBITO   868.47   867.83   +0.07%   -6.20%
 P       a         P>                                  
 .CRBEX  Zagreb    <.CRBEX  1612.02  1606.64   +0.33%  -20.10%
                   >                                   
 .BELEX  Belgrade  <.BELEX   654.27   654.10   +0.03%  -18.39%
 15                15>                                 
 .SOFIX  Sofia     <.SOFIX   442.92   441.32   +0.36%  -22.04%
                   >                                   
                                                              
                   BONDS                                      
                            Yield    Yield    Spread   Daily
                            (bid)    change   vs Bund  change
                                                       in
         Czech                                         spread
         Republic                                      
 CZ2YT=    2-year  <CZ2YT=   0.1200  -0.0160   +079bp    -1bps
 RR                RR>                              s  
 CZ5YT=    5-year  <CZ5YT=   0.3530  -0.0570   +101bp    -4bps
 RR                RR>                              s  
 CZ10YT            <CZ10YT   0.8790   0.0140   +134bp    +3bps
 =RR     10-year   =RR>                             s  
         Poland                                               
 PL2YT=    2-year  <PL2YT=   0.1330   0.0010   +080bp    +1bps
 RR                RR>                              s  
 PL5YT=    5-year  <PL5YT=   0.7850  -0.0220   +144bp    -1bps
 RR                RR>                              s  
 PL10YT            <PL10YT   1.3570  -0.0120   +182bp    +1bps
 =RR     10-year   =RR>                             s  
                                                              
                   FRA                                        
                            3x6      6x9      9x12     3M
                                                       interba
                                                       nk
         Czech     <CZKFRA     0.32     0.32     0.35     0.34
         Rep       ><PRIBO                             
                   R=>                                 
         Hungary   <HUFFRA     0.67     0.66     0.65     0.70
                   ><BUBOR                             
                   =>                                  
         Poland    <PLNFRA     0.20     0.21     0.22     0.25
                   ><WIBOR                             
                   =>                                  
         Note: FRA quotes are for                             
         ask prices                                    
         ********************************************         
         ******************                            
                                                              
    
    

 (Reporting by Alan Charlish in Warsaw, Jason Hovet in Prague,
Anita Komuves in Budapest; Editing by Shailesh Kuber)
  
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