CEE MARKETS-Polish zloty recovers as fears over escalation from missile hit ease
Updates prices, adds details
By Luiza Ilie and Jason Hovet
BUCHAREST, Nov 16 (Reuters) - 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 amplifiedthe war in Ukraine after Russia's invasion could spill into countries, pushing the zloty to three-week lows in overnight trading.
On Wednesday,told allies the missile was from Ukrainian air defence, a NATO source said.
Polish President Andrzej Dudathere was "high probability" the rocket was used by Ukraine forces and there was 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 saidto 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.
AT 1224 CET
Note: daily change
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)
For related and prices, click on the codes in brackets:
All emerging market EMRG CEEU CEE/
Spot FX rates
Eastern Europe spot FX EEFX= Middle East spot FX MEFX=
Asia spot FX ASIAFX= Latin America spot FX LATAMFX=
Other and reports
World central bank CEN Economic Data Guide ECONGUIDE
Official rates GLOBAL/INT Emerging Diary EMRG/DIARY
Top events M/DIARY Diaries DIARY Diaries Index IND/DIARY