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CEE MARKETS-Assets tread water as investors eye ECB
July 20, 2017 / 8:09 AM / 4 months ago

CEE MARKETS-Assets tread water as investors eye ECB

    By Marton Dunai
    BUDAPEST, July 20 (Reuters) - Emerging European assets
mostly trod water on Thursday morning before the European
Central Bank's meeting, amid light trading.
    The European Central Bank is expected to leave interest
rates and QE policy unchanged, but president Mario Draghi could
give more details on how the central bank plans to gradually
unwind its bond buying stimulus.
    "Markets are keeping their eyes peeled for any sign of
Draghi comments on an end of the easing cycle, and any slight
change could move the major crosses, affecting emerging European
assets as well, but I would not bank on major moves," a dealer
said in Budapest.
    Stocks rose slightly, lifted by sustained investor interest
in emerging markets, built on recent cautious remarks from the
Federal Reserve which signalled more opportunity in higher
yielding assets elsewhere.
    Polish stocks added a third of a percent, with Hungarian and
Romanian stocks rising by a quarter of a percent. Other stock
indices were little changed.
    The forint hovered near an eight-month high despite
sustained rhetoric by the National Bank of Hungary about using
unconventional easing tools on top of record low interest rates
if necessary to keep the unit at bay. 
    The bank kept interest rates unchanged as expected on
Tuesday, with any price pressures from strong economic growth
seen as unlikely to lift inflation beyond its 3 percent target
level this year or next.
    The crown was flat just north of the 26 level to the euro
even as Czech producer prices dropped more than expected on a
monthly basis, posting their biggest decline in more than a
year.
    On Wednesday the unit had touched its strongest level since
the central bank abandoned its exchange rate cap regime earlier
this year.
    In Poland, political clouds gathered as the European Union
gave Warsaw a week to halt divisive judicial reforms or face
punishment for undermining democracy.    


               CEE MARKETS  SNAPSH   AT  0926 CET         
                            OT                      
                            CURRENCIES                    
                            Latest  Previo  Daily   Change
                                    us              
                            bid     close   change  in
                                                    2017
 Czech crown                26.064  26.081   +0.07   3.62%
                                 0       5       %  
 Hungary                    305.90  305.97   +0.02   0.95%
 forint                         00      00       %  
 Polish zloty               4.2129  4.2113  -0.04%   4.53%
 Romanian leu               4.5670  4.5700   +0.07  -0.70%
                                                 %  
 Croatian                   7.4110  7.4155   +0.06   1.94%
 kuna                                            %  
 Serbian                    120.57  120.67   +0.08   2.31%
 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                     1008.5  1007.9   +0.06   +9.43
                                 6       2       %       %
 Budapest                   35869.  35789.   +0.23   +12.0
                                90      28       %      8%
 Warsaw                     2382.2  2374.3   +0.34   +22.3
                                 7       1       %      0%
 Bucharest                  8289.9  8268.7   +0.26   +17.0
                                 7       7       %      1%
 Ljubljana                  800.22  801.03  -0.10%   +11.5
                                                        1%
 Zagreb                       0.00  1859.0   +0.00  -100.0
                                         3       %      0%
 Belgrade                     0.00  709.27   +0.00  -100.0
                                                 %      0%
 Sofia                      711.94  710.78   +0.16   +21.4
                                                 %      0%
                            BONDS                         
                            Yield   Yield   Spread  Daily
                            (bid)   change  vs      change
                                            Bund    in
 Czech                                              spread
 Republic                                           
   2-year                        0     0.2   +063b   +19bp
                                                ps       s
   5-year                    0.068   0.037   +019b   +3bps
                                                ps  
   10-year                   0.918       0   +037b   -1bps
                                                ps  
 Poland                                                   
   2-year                    1.844  -0.005   +248b   -1bps
                                                ps  
   5-year                    2.666  -0.004   +279b   -1bps
                                                ps  
   10-year                   3.296   0.016   +275b   +0bps
                                                ps  
               FORWARD      RATE    AGREEMENT             
                            3x6     6x9     9x12    3M
                                                    interb
                                                    ank
 Czech Rep             <PR    0.48     0.6    0.69       0
               IBOR=>                               
 Hungary               <BU     0.2    0.24    0.31    0.15
               BOR=>                                
 Poland                <WI   1.755   1.779   1.825    1.73
               BOR=>                                
 Note: FRA     are for ask                                
 quotes        prices                               
 *********************************************************
 *****
 
 (Reporting by Marton Dunai; Editing by Andrew Heavens)
  
 
 

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