SPY424.31+0.70 0.17%
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CEE MARKETS-Warsaw stocks at 15-month high, FX cools

05/10/2021 06:05
CEE MARKETS-Warsaw stocks at 15-month high, FX cools

- Central European stock markets charged ahead on Monday, with Warsaw's blue-chip index touching its highest since February 2020, while currencies largely gave back recent gains.

Stocks followed global equity markets higher on prospects that interest rates in the United States will remain low and the economic recovery on track.

Locally, Prague shares were also propelled by a 1% rise in utility CEZ CEZP.PR before it reports quarterly results on Tuesday. CEZ shares have been lifted to multi-year highs by expectations of a hefty dividend after it sold some foreign assets. nL8N2MU3T3

Prague's PX .PX index added 0.6% overall, Budapest .BUX was 0.5% higher and Warsaw .WIG20 led gains with a 1.5% rise.

On currency markets, the Hungarian forint EURHUF= cooled 0.15% to trade at 358.12 to the euro. The Czech crown EURCZK= was steady at 25.637 per euro.

Both were waiting on inflation data due on Tuesday, with an inflation spike in Hungary recently drawing some attention.

The Hungarian central bank expects headline inflation to approach 5% in the second quarter, driven by fuel prices and tax changes, overshooting its 2%-4% target range. It has called the move temporary but has pledged to prevent any sustained rise. nL8N2MK11U

Czech rate setters, on the other hand, have flagged that they could become the first in the region to begin tightening policy sooner rather than later.

Market bets on a rate hike as soon as August have jumped since last Thursday's Czech policy meeting after which Governor Jiri Rusnok said a rate rise this year was a certainty. nL8N2MT75W Rates markets were quieter on Monday while bond yields were mixed.

Elsewhere, the Polish zloty EURPLN= slipped 0.45%, giving up gains from last Friday after a decision from the country's Supreme Court that set the stage for a hearing this week to determine how courts treat thousands of borrowers who took out Swiss franc loans more than a decade ago. nL8N2MU31H




CEE MARKETS

SNAPSHOT

AT 1120 CET












CURRENCIES








Latest

Previous

Daily

Change




bid

close

change

in 2021

EURCZK=

Czech crown

EURCZK=

25.6370

25.6400

+0.01%

+2.31%

EURHUF=

Hungary forint

EURHUF=

358.1200

357.5800

-0.15%

+1.28%

EURPLN=

Polish zloty

EURPLN=

4.5754

4.5548

-0.45%

-0.35%

EURRON=

Romanian leu

EURRON=

4.9255

4.9260

+0.01%

-1.23%

EURHRK=

Croatian kuna

EURHRK=

7.5325

7.5345

+0.03%

+0.20%

EURRSD=

Serbian dinar

EURRSD=

117.5000

117.6000

+0.09%

+0.06%


Note: daily change

calculated from



1800 CET











STOCKS








Latest

Previous

Daily

Change





close

change

in 2021

.PX

Prague

.PX

1116.60

1109.8700

+0.61%

+8.71%

.BUX

Budapest

.BUX

44392.28

44164.37

+0.52%

+5.43%

.WIG20

Warsaw

.WIG20

2129.03

2097.31

+1.51%

+7.31%

.BETI

Bucharest

.BETI

11664.97

11591.48

+0.63%

+18.96%

.SBITOP

Ljubljana

.SBITOP

1068.22

1067.88

+0.03%

+18.58%

.CRBEX

Zagreb

.CRBEX

1950.24

1935.53

+0.76%

+12.13%

.BELEX15

Belgrade

.BELEX15

754.96

755.92

-0.13%

+0.85%

.SOFIX

Sofia

.SOFIX

518.07

518.05

+0.00%

+15.76%










BONDS








Yield

Yield

Spread

Daily




(bid)

change

vs Bund

change in


Czech Republic





spread

CZ2YT=RR

2-year

CZ2YT=RR

0.6040

0.0060

+129bps

+0bps

CZ5YT=RR

5-year

CZ5YT=RR

1.3810

-0.0080

+196bps

-2bps

CZ10YT=RR

10-year

CZ10YT=RR

1.7920

-0.0090

+200bps

-2bps


Poland






PL2YT=RR

2-year

PL2YT=RR

0.1290

0.0120

+081bps

+1bps

PL5YT=RR

5-year

PL5YT=RR

0.9510

0.0000

+153bps

-1bps

PL10YT=RR

10-year

PL10YT=RR

1.6960

0.0090

+190bps

-1bps










FRA








3x6

6x9

9x12

3M interbank


Czech Rep

CZKFRAPRIBOR=

0.59

0.89

1.26

0.36


Hungary

HUFFRABUBOR=

0.96

1.12

1.29

0.79


Poland

PLNFRAWIBOR=

0.27

0.33

0.46

0.21


Note: FRA quotes are for ask prices






**************************************************************













(Reporting by Jason Hovet in Prague
Editing by Gareth Jones)

(([email protected]; +420 234 721 613;))

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