July 29, 2020 / 9:57 AM / 11 days ago

CEE MARKETS-Currencies ease on virus worries ahead of Fed

    By Alan Charlish
    WARSAW, July 29 (Reuters) - Most central European currencies
were slightly weaker on Wednesday ahead of a meeting of the U.S.
Federal Reserve, as investors worried about an intensification
of the COVID-19 pandemic.      
    In the face of mounting risks to the economic recovery, the
Fed is expected to sound reassuringly accommodative at its
policy review later in the day. It publishes its interest rate
decision, which is not expected to change, at 1800
GMT.
    "The market in the last couple of days priced in a bunch of
positive information, the European Union budget, information
from pharmaceutical companies about the COVID vaccine and strong
data from Poland ... but markets forgot about the pandemic,"
said Mateusz Sutowicz, a financial market analyst at Bank
Millennium.
    "In our opinion, the last drop of the euro/Polish zloty was
too big."
    At 0850 GMT, the Polish zloty was 0.07% weaker
against the euro at 4.4166 and the Hungarian forint
had softened 0.1% to 347.25
    The Czech Crown and Romanian leu were
little changed at 26.255 and 4.8345, respectively.
    Polish mining and energy stocks fell around 3%-5% after the
government on Tuesday scrapped a plan to close two mines owned
by the country's biggest coal producer, PGG, dampening hopes for
reform of Poland's coal-dominated energy industry.
    Warsaw's WIG 20 index was down 0.51%, with JSW
, the European Union's biggest coking coal producer, the
biggest faller.
    Budapest's main index was down 0.36%, while Prague's
PX index was almost flat.
    Benchmark Polish 10-year yields fell almost 2
basis points to 1.32%
    "Bonds, unlike other asset classes, were not gaining in the
last days, possibly on expectations that FOMC will remain
dovish, so a potential correction may not be too strong,"
Santander Bank Polska analysts said in a note.
    Czech 10-year yields rose 3 basis points to
0.851%
    
    
                   CEE      SNAPSHO   AT                      
                   MARKETS  T        1050              
                                     CET               
                                                              
                   CURRENC                                    
                   IES                                 
                            Latest   Previou  Daily    Change
                                     s                 
                            bid      close    change   in 2020
 EURCZK  Czech     <EURCZK  26.2550  26.2645   +0.04%   -3.13%
 =       crown     =>                                  
 EURHUF  Hungary   <EURHUF  347.250  346.915   -0.10%   -4.64%
 =       forint    =>             0        0           
 EURPLN  Polish    <EURPLN   4.4166   4.4134   -0.07%   -3.63%
 =       zloty     =>                                  
 EURRON  Romanian  <EURRON   4.8345   4.8339   -0.01%   -0.96%
 =       leu       =>                                  
 EURHRK  Croatian  <EURHRK   7.5020   7.5065   +0.06%   -0.75%
 =       kuna      =>                                  
 EURRSD  Serbian   <EURRSD  117.570  117.620   +0.04%   +0.00%
 =       dinar     =>             0        0           
         Note:     calculated from            1800            
         daily                                CET      
         change                                        
                                                              
                   STOCKS                                     
                            Latest   Previou  Daily    Change
                                     s                 
                                     close    change   in 2020
 .PX     Prague              909.17  909.420   -0.03%  -18.51%
                                           0           
 .BUX    Budapest           34627.9  34754.0   -0.36%  -24.86%
                                  2        8           
 .WIG20  Warsaw    <.WIG20  1814.29  1823.52   -0.51%  -15.62%
                   >                                   
 .BETI   Buchares           8586.99  8613.48   -0.31%  -13.93%
         t                                             
 .SBITO  Ljubljan  <.SBITO   853.35   852.35   +0.12%   -7.83%
 P       a         P>                                  
 .CRBEX  Zagreb    <.CRBEX  1583.98  1582.68   +0.08%  -21.49%
                   >                                   
 .BELEX  Belgrade  <.BELEX   667.66   666.65   +0.15%  -16.72%
 15                15>                                 
 .SOFIX  Sofia     <.SOFIX   438.20   438.22   -0.00%  -22.87%
                   >                                   
                                                              
                   BONDS                                      
                            Yield    Yield    Spread   Daily
                            (bid)    change   vs Bund  change
                                                       in
         Czech                                         spread
         Republic                                      
 CZ2YT=    2-year  <CZ2YT=  -0.0570   0.0250   +064bp    +3bps
 RR                RR>                              s  
 CZ5YT=    5-year  <CZ5YT=   0.4000  -0.0550   +110bp    -6bps
 RR                RR>                              s  
 CZ10YT            <CZ10YT   0.8510   0.0300   +136bp    +3bps
 =RR     10-year   =RR>                             s  
         Poland                                               
 PL2YT=    2-year  <PL2YT=   0.1300   0.0090   +082bp    +2bps
 RR                RR>                              s  
 PL5YT=    5-year  <PL5YT=   0.7030  -0.0260   +140bp    -3bps
 RR                RR>                              s  
 PL10YT            <PL10YT   1.3200  -0.0180   +183bp    -2bps
 =RR     10-year   =RR>                             s  
                                                              
                   FRA                                        
                            3x6      6x9      9x12     3M
                                                       interba
                                                       nk
         Czech     <CZKFRA     0.31     0.32     0.36     0.34
         Rep       ><PRIBO                             
                   R=>                                 
         Hungary   <HUFFRA     0.60     0.59     0.57     0.60
                   ><BUBOR                             
                   =>                                  
         Poland    <PLNFRA     0.20     0.20     0.21     0.24
                   ><WIBOR                             
                   =>                                  
         Note: FRA quotes are for                             
         ask prices                                    
         ********************************************         
         ******************                            
                                                              
 

    

 (Reporting by Alan Charlish; Editing by Aditya Soni)
  
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