SPY443.48+0.30 0.07%
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CEE MARKETS-Zloty extends gains on rate hike expectations

CEE MARKETS-Zloty extends gains on rate hike expectations

reuters.com · 09/01/2021 05:20
CEE MARKETS-Zloty extends gains on rate hike expectations

By Anita Komuves

- The Polish zloty extended gains on Wednesday after outperforming regional peers in the previous session, as a jump in inflation data fuelled expectations that the National Bank of Poland could start tightening policy later this year.

The Polish zloty EURPLN= was 0.14% higher and trading at 4.5183 per euro, hitting a fresh 8-week high. Inflation in Poland jumped above 5% for the first time in 20 years in August. nL1N2Q20JY

"The reason why the zloty reacted favourably is that this print might go some distance towards finally tilting the MPC balance towards a tighter monetary stance," Commerzbank said.

Central banks in Hungary and the Czech Republic started raising rates in June to fight inflation as their economies are rebounding from the crisis caused by the pandemic.

At the same time, policymakers in Poland have kept rates at record lows which put pressure on the zloty in recent weeks.

Investors in Poland were also looking ahead to Thursday when the Supreme Court could issue a long-awaited ruling clarifying how holders of mortgages in Swiss francs should settle with banks after the decision to cancel the loan contract.

The decision may decide the size of the banks' losses on these loans.

Elsewhere, the Czech crown EURCZK= edged down 0.06% to 25.44 versus the common currency.

The Hungarian forint EURHUF= gained 0.16% and was trading at 348.36 to the euro.

The forint "keeps trading in the tight range between 348-350. The bottom of the range is an extremely important support level," brokerage Equilor said.

PMI data published on Wednesday showed Central Europe's manufacturing sector remained firmly on a growth path in August, but the expansion continued to slow from a previous record pace amid capacity constraints. nL1N2Q30G8

Most stocks in the CEE region gained, with Bucharest's equities .BETI up 1.58%. Prague's index .PX firmed 0.58%, while Warsaw .WIG20 added 0.24%. Budapest' stocks .BUX edged down 0.02%.




CEE MARKETS

SNAPSHOT

AT 1056 CET






CURRENCIES







Latest

Previous

Daily

Change




bid

close

change

in 2021

EURCZK=

Czech crown

EURCZK=

25.4400

25.4250

-0.06%

+3.10%

EURHUF=

Hungary forint

EURHUF=

348.3600

348.9300

+0.16%

+4.12%

EURPLN=

Polish zloty

EURPLN=

4.5183

4.5245

+0.14%

+0.91%

EURRON=

Romanian leu

EURRON=

4.9349

4.9340

-0.02%

-1.42%

EURHRK=

Croatian kuna

EURHRK=

7.4870

7.4895

+0.03%

+0.81%

EURRSD=

Serbian dinar

EURRSD=

117.4800

117.5800

+0.09%

+0.08%


Note: daily change

calculated from


1800 CET












Latest

Previous

Daily

Change





close

change

in 2021

.PX

Prague

.PX

1291.63

1284.1500

+0.58%

+25.75%

.BUX

Budapest

.BUX

51956.75

51969.67

-0.02%

+23.39%

.WIG20

Warsaw

.WIG20

2373.79

2368.03

+0.24%

+19.65%

.BETI

Bucharest

.BETI

12371.45

12177.31

+1.59%

+26.17%

.SBITOP

Ljubljana

.SBITOP

1195.98

1197.16

-0.10%

+32.76%

.CRBEX

Zagreb

.CRBEX

1976.42

1967.54

+0.45%

+13.63%

.BELEX15

Belgrade

.BELEX15

804.83

805.01

-0.02%

+7.51%

.SOFIX

Sofia

.SOFIX

562.84

566.10

-0.58%

+25.77%











Yield

Yield

Spread

Daily




(bid)

change

vs Bund

change in


Czech Republic





spread

CZ2YT=RR

2-year

CZ2YT=RR

1.6960

0.0110

+242bps

+1bps

CZ5YT=RR

5-year

CZ5YT=RR

1.7670

0.0050

+244bps

+0bps

CZ10YT=RR

10-year

CZ10YT=RR

1.8380

-0.0030

+221bps

-2bps


Poland






PL2YT=RR

2-year

PL2YT=RR

0.4480

-0.0380

+117bps

-4bps

PL5YT=RR

5-year

PL5YT=RR

1.2510

0.0480

+192bps

+5bps

PL10YT=RR

10-year

PL10YT=RR

1.9000

0.0630

+227bps

+5bps



FORWARD








3x6

6x9

9x12

3M interbank


Czech Rep

CZKFRAPRIBOR=

1.62

2.06

2.22

0.98


Hungary

HUFFRABUBOR=

2.12

2.26

2.33

1.60


Poland

PLNFRAWIBOR=

0.49

0.72

1.00

0.23


Note: FRA quotes

are for ask prices





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



(Additional reporting by Alicja Ptak in Warsaw; Editing by Shounak Dasgupta)

((komuves.anita@thomsonreuters.com)(+36 70 795 8815))

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