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CEE MARKETS-Polish zloty recovers as fears over escalation from missile hit ease

Reuters · 11/16/2022 07:04
CEE MARKETS-Polish zloty recovers as fears over escalation from missile hit ease

Updates prices, adds details

By Luiza Ilie and Jason Hovet


- The Polish zloty recovered on Wednesday as tensions eased over a missile which killed two people in Poland on Tuesday the NATO member's border with Ukraine, shaking market confidence.

The missile strike amplified concerns the war in Ukraine after Russia's invasion could spill into countries, pushing the zloty to three-week lows in overnight trading.

On Wednesday, U.S. President Joe Biden told allies the missile was from Ukrainian air defence, a NATO source said.

Polish President Andrzej Duda later said there was "high probability" the rocket was used by Ukraine forces and there was evidence it was launched by Russia.

The zloty EURPLN= was down 0.3% on the day at 4.70 to the euro at 1124 GMT, off an overnight low of around 4.78.

Warsaw's blue-chip index .WIG20 remained down 1.6%.

Biden has said publicly the missile was "unlikely" to have been fired from Russia. If confirmed, that would likely alleviate concern that the first deadly incident in a NATO country since the war in Ukraine began might lead to escalation.

Markets were also watching a suspension of oil deliveries to central and eastern Europe via a section of the Druzhba pipeline, due to technical reasons in Ukraine.

"The only thing concerning markets today is that there is this uncertainty around the oil supply. Everyone hopes it will be fixed as soon as possible," an FX trader in Budapest said.

Hungary's MOL said its Ukrainian partner told the company that a Russian rocket had hit a power station which provides electricity for a pump station.

Russia's state-owned pipeline operator Transneft said Ukraine was planning to resume pumping oil via the Druzhba pipeline on Wednesday, TASS agency reported.

MOL MOLB.BU shares were down around 1%. Indices in Budapest .BUX and Prague .PX were down 0.65% and 0.1% respectively, while Bucharest rose 1.2%.

Hungary's forint EURHUF= was flat on the day while the Czech crown EURCZK= and the Romanian leu EURRON= were also little changed.

The forint, which has lost more than 9% so far in 2022 to make it the worst-performing currency in central Europe, had fallen as far as 413.80 per euro, but was trading at 407.0 per euro midday, 1.7% firmer than overnight lows.





CEE MARKETS

SNAPSHOT

AT 1224 CET






CURRENCIES







Latest

Previous

Daily

Change




bid

close

change

in 2022

EURCZK=

Czech crown

EURCZK=

24.3480

24.3150

-0.14%

+2.15%

EURHUF=

Hungary forint

EURHUF=

407.0000

406.6000

-0.10%

-9.24%

EURPLN=

Polish zloty

EURPLN=

4.7020

4.6870

-0.32%

-2.36%

EURRON=

Romanian leu

EURRON=

4.9200

4.9150

-0.10%

+0.57%

EURHRK=

Croatian kuna

EURHRK=

7.5420

7.5475

+0.07%

-0.32%

EURRSD=

Serbian dinar

EURRSD=

117.2000

117.3000

+0.09%

+0.32%


Note: daily change

calculated from


1800 CET












Latest

Previous

Daily

Change





close

change

in 2022

.PX

Prague

.PX

1245.30

1246.8100

-0.12%

#VALUE!

.BUX

Budapest

.BUX

44020.78

44308.29

-0.65%

-13.21%

.WIG20

Warsaw

.WIG20

1738.13

1769.55

-1.78%

-23.33%

.BETI

Bucharest

.BETI

11797.80

11656.53

+1.21%

-9.67%

.SBITOP

Ljubljana

.SBITOP

1073.71

1073.81

-0.01%

-14.48%

.CRBEX

Zagreb

.CRBEX

1897.76

1907.00

-0.48%

-8.73%

.BELEX15

Belgrade

.BELEX15

810.27

800.46

+1.23%

-1.28%

.SOFIX

Sofia

.SOFIX

591.71

595.14

-0.58%

-6.92%











Yield

Yield

Spread

Daily




(bid)

change

vs Bund

change in


Czech Republic





spread

CZ2YT=RR

2-year

CZ2YT=RR

5.7780

-0.3460

+361bps

-36bps

CZ5YT=RR

5-year

CZ5YT=RR

5.2210

0.1020

+317bps

+10bps

CZ10YT=RR

10-year

CZ10YT=RR

4.9750

-0.0070

+288bps

-1bps


Poland






PL2YT=RR

2-year

PL2YT=RR

7.1650

0.1140

+499bps

+10bps

PL5YT=RR

5-year

PL5YT=RR

7.3510

0.1350

+530bps

+14bps

PL10YT=RR

10-year

PL10YT=RR

7.1130

0.1220

+501bps

+12bps



FORWARD








3x6

6x9

9x12

3M interbank


Czech Rep

CZKFRAPRIBOR=

7.15

6.93

6.61

7.26


Hungary

HUFFRABUBOR=

13.63

12.73

11.88

15.62


Poland

PLNFRAWIBOR=

7.35

7.29

7.11

7.42


Note: FRA quotes

are for ask prices





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















(Reporting by Luiza Ilie in Bucharest, Anita Komuves in Budapest, Jason Hovet in Prague and Anna Wlodarczak-Semczuk in Warsaw; Editing by Jason Hovet, Elaine Hardcastle and Alexander Smith)

((luiza.ilie@thomsonreuters.com; +4021 527 0312; https://www.reuters.com/journalists/luiza-ilie))

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