March 23, 2018 / 10:12 AM / in a month

CEE MARKETS-Forint falls as Hungary posts smaller current account surplus

    * Global trade war fear knocks currencies, stocks lower
    * Forint leads FX loss as current account surplus
disappoints
    * Banks, energy firms lead decline in stocks
    * Government bonds retreat slightly, or stay flat

    By Sandor Peto
    BUDAPEST, March 23 (Reuters) - Central European currencies
and stocks fell on Friday as fears of a global trade war drove
investors away from the risk of emerging markets.
    The forint led the decline, dropping 0.3 percent
to 313 per euro by 0908 GMT. The zloty and the Czech
crown slipped about 0.1 percent.
    The forint fell after Hungary posted a current account
surplus of 197 million euros for the last quarter of 2017.
Analysts had expected a surplus of 738 million euros
.
    The surplus, which has been a key support for the forint,
narrowed to 3.6 billion euros in 2017, down from 6.87 billion
euros the year before.
    But "local factors are not really on the map right now ...
emerging markets are getting a beating anyway," one
Budapest-based currency dealer said.
    The main reason was the prospect of a global trade war,
after the Unites States announced tariffs on Chinese and China
threatened retaliation.  
    Regional stocks extended Thursday's losses at a somewhat
slower pace, led by bank and energy stocks.
    Warsaw's blue-chip index fell 1.4 percent and
Prague shed 1 percent. 
    Budapest, after a heavy beating on Thursday, eased
only 0.6 percent.
    Long-term government bond yields were flat or rose by 1 to 2
basis points. Hungarian yields were steady before Tuesday's
central bank meeting, where rate setters are expected to
reaffirm they would keep monetary policy loose.
    Romanian bonds were mixed, after the government rejected all
bids at a tender to sell 2019 debt.
    Analysts expect Romania's central bank to continue to raise
interest rates at its meeting on April 6.
    The leu firmed a shade.
    
            CEE       SNAPSHOT   AT                         
            MARKETS             1008 CET            
                      CURRENCI                              
                      ES                            
                      Latest    Previous  Daily     Change
                      bid       close     change    in 2018
 Czech      <EURCZK=   25.4350   25.4050    -0.12%    +0.42%
 crown      >                                       
 Hungary    <EURHUF=  313.0000  312.2000    -0.26%    -0.67%
 forint     >                                       
 Polish     <EURPLN=    4.2224    4.2169    -0.13%    -1.09%
 zloty      >                                       
 Romanian   <EURRON=    4.6665    4.6690    +0.05%    +0.28%
 leu        >                                       
 Croatian   <EURHRK=    7.4445    7.4435    -0.01%    -0.19%
 kuna       >                                       
 Serbian    <EURRSD=  118.4900  118.3200    -0.14%    +0.01%
 dinar      >                                       
 Note:      calculated from               1800 CET          
 daily                                              
 change                                             
                                                            
                      Latest    Previous  Daily     Change
                                close     change    in 2018
 Prague                1107.17  1118.730    -1.03%    +2.69%
                                       0            
 Budapest             37110.94  37350.75    -0.64%    -5.76%
 Warsaw                2241.90   2274.10    -1.42%    -8.91%
 Bucharest             8575.86   8643.85    -0.79%   +10.60%
 Ljubljana  <.SBITOP    822.66    828.15    -0.66%    +2.02%
            >                                       
 Zagreb                1834.90   1841.39    -0.35%    -0.43%
 Belgrade   <.BELEX1    756.28    754.73    +0.21%    -0.46%
            5>                                      
 Sofia                  668.22    667.67    +0.08%    -1.36%
                      BONDS                                 
                      Yield     Yield     Spread    Daily
                      (bid)     change    vs Bund   change
                                                    in
 Czech                                              spread
 Republic                                           
   2-year   <CZ2YT=R    0.8430   -0.0190   +142bps     -2bps
            R>                                      
   5-year   <CZ5YT=R    1.2950   -0.0070   +136bps     -1bps
            R>                                      
   10-year  <CZ10YT=    1.9440    0.0130   +142bps     +2bps
            RR>                                     
 Poland                                                     
   2-year   <PL2YT=R    1.5530    0.0170   +213bps     +1bps
            R>                                      
   5-year   <PL5YT=R    2.4360    0.0220   +250bps     +2bps
            R>                                      
   10-year  <PL10YT=    3.2500    0.0120   +272bps     +2bps
            RR>                                     
            FORWARD   RATE      AGREEMEN                    
                                T                   
                      3x6       6x9       9x12      3M
                                                    interban
                                                    k
 Czech Rep                0.97      1.07      1.24      0.90
            <PRIBOR=                                
            >                                       
 Hungary                  0.07      0.10      0.18      0.03
                                                    
 Poland                   1.72      1.74      1.76      1.70
                                                    
 Note: FRA  are for ask prices                              
 quotes                                             
 
 (Reporting by Sandor Peto, editing by Larry King)
  
 
 
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below