July 17, 2017 / 8:55 AM / 8 days ago

CEE MARKETS-Hungary shines as emerging markets' rise lifts east Europe

7 Min Read

    By Marton Dunai
    BUDAPEST, July 17 (Reuters) - The Hungarian blue chip stock
index reached new all-time highs on Monday as emerging
European indices rose, bouyed by cautious U.S. rate policy and
Chinese growth.
    The BUX topped 36,000 points and was up by a third in past
year as its major stocks all rose. OTP Bank was close to a
10-year high at 9,633 forints and MOL near a 6-year high at
22,085 forints.
    Federal Reserve Chair Janet Yellen indicated on Wednesday
that the Fed's rate hikes could be gradual rather than fast.
That has increased risk appetite in global markets and also in
the European Union's eastern members.
    Other Eastern European stock indices also rose as MSCI's
emerging market index was up 0.4 percent in early
trading, setting new two-year highs.
    In what was taken as another positive sign for emerging
markets in eastern Europe, China's economy grew faster than
expected in the second quarter though analysts expect slower
growth over the rest of the year. 
    "The mood is positive everywhere, even emerging markets like
Turkey or Mexico turned positive after recent slumps," a dealer
said in Budapest.
    He added that the forint, which bucked a recent emerging
market weakening trend and behaved like a safe-haven unit, added
yet more with the current upswing and traded at 306.40, near a
one-month high but also just one percent off a two-year high.
    The forint was especially under upward pressure in the
dollar cross. The euro cross mostly tracked the HUF/USD pair,
which could appreciate by as much as two percent in the near
future, the dealer said.
    That outlook could engage the National Bank of Hungary
(NBH), which is expected to hold fire at a rate-setting meeting
on Tuesday but which has used unconventional tools to keep the
forint's gains at bay.
    The NBH, Central Europe's most dovish central bank, may
loosen monetary conditions further through measures lifting
liquidity in forint markets despite likely tightening by other
central banks, analysts said last week.
    
    
               CEE MARKETS  SNAPSH   AT  1014 CET         
                            OT                      
                            CURRENCIES                    
                            Latest  Previo  Daily   Change
                                    us              
                            bid     close   change  in
                                                    2017
 Czech crown                26.103  26.070  -0.13%   3.46%
                                 0       0          
 Hungary                    306.20  305.91  -0.09%   0.86%
 forint                         00      00          
 Polish zloty               4.2088  4.2038  -0.12%   4.64%
 Romanian leu               4.5620  4.5625   +0.01  -0.59%
                                                 %  
 Croatian                   7.4100  7.4072  -0.04%   1.96%
 kuna                                               
 Serbian                    120.04  120.19   +0.12   2.76%
 dinar                          00      00       %  
 Note: daily   calculated   previo  close   1800          
 change        from         us      at      CET     
                            STOCKS                        
                            Latest  Previo  Daily   Change
                                    us              
                                    close   change  in
                                                    2017
 Prague                     1005.6  1000.5   +0.51   +9.12
                                 2       4       %       %
 Budapest                   36118.  35915.   +0.56   +12.8
                                34      42       %      6%
 Warsaw                     2373.3  2350.4   +0.98   +21.8
                                 6       3       %      4%
 Bucharest                  8213.2  8132.7   +0.99   +15.9
                                 1       3       %      2%
 Ljubljana                  808.15  812.45  -0.53%   +12.6
                                                        2%
 Zagreb                     1857.0  1858.6  -0.09%  -6.91%
                                 5       3          
 Belgrade                   714.03  715.05  -0.14%  -0.47%
 Sofia                      710.48  713.10  -0.37%   +21.1
                                                        5%
                            BONDS                         
                            Yield   Yield   Spread  Daily
                            (bid)   change  vs      change
                                            Bund    in
 Czech                                              spread
 Republic                                           
   2-year                     -0.1    0.05   +052b   +7bps
                                                ps  
   5-year                    0.078       0   +018b   +1bps
                                                ps  
   10-year                   0.991   0.029   +040b   +4bps
                                                ps  
 Poland                                                   
   2-year                    1.832  -0.087   +246b   -7bps
                                                ps  
   5-year                    2.669  -0.005   +277b   +0bps
                                                ps  
   10-year                   3.308   0.006   +272b   +1bps
                                                ps  
               FORWARD      RATE    AGREEMENT             
                            3x6     6x9     9x12    3M
                                                    interb
                                                    ank
 Czech Rep             <PR    0.43    0.52     0.6       0
               IBOR=>                               
 Hungary               <BU    0.21    0.23   0.285    0.15
               BOR=>                                
 Poland                <WI   1.752   1.777   1.818    1.73
               BOR=>                                
 Note: FRA     are for ask                                
 quotes        prices                               
 *********************************************************
 *****
 

 (Reporting by Marton Dunai; Editing by Andrew Heavens)
  
 
 

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