June 22, 2020 / 9:40 AM / 14 days ago

CEE MARKETS-Stocks slip, currencies stable ahead of central bank meetings

    By Anita Komuves
    BUDAPEST, June 22 (Reuters) - Central European stocks eased
and currencies sought direction on Monday with global markets
unnerved by new outbreaks of coronavirus infections in the
United States and Germany.
    Romanian equities led losses in the region, dropping by just
over 1%. 
    Investors were eyeing key central bank rate setting meetings
in Budapest and Prague this week with both banks expected to
hold fire.
    The Hungarian forint slid by 0.09% to 346.00
versus the euro at 0751 GMT.
    The National Bank of Hungary is likely to leave interest
rates unchanged, according to a Reuters poll of analysts.

    "Markets are expecting some kind of easing in the future,
probably three months from now at the next rate meeting," a
Budapest-based trader said.
    "The bank will most likely not cut the base rate even then
but lower the interest rate on the one-week deposit tender or
manage fx swap tenders."  
    The NBH has offered the one-week facility at a rate of 0.9%
since it was introduced in April. Some analysts called the move
an implicit rate hike by the region's previously most dovish
central bank.
    Markets will also watch out for signs in the bank's
communication on Tuesday about the possible effect of a change
in leadership, analysts said.
    Tuesday's session will be the first since the resignation of
Deputy Governor Marton Nagy, architect of many of the bank's
unconventional monetary easing programmes. He will be replaced
by Managing Director Barnabas Virag.
    The Czech central bank meets on Wednesday. Analysts
anticipate no rate change. The Czech National Bank has cut by
200 basis points since March to put the base rate at 0.25%. 
    Antivirus software maker Avast's
dual-listed shares rose more than 3% in Prague after being
included in London's FTSE 100 index.
    The Czech crown was stable on Monday, firming
0.04% and trading at 26.644 to the euro. Elsewhere, the zloty
 was up 0.23% at 4.4563 versus the common currency. 
    
                   CEE        SNAPSHOT   AT                      
                   MARKETS              0951              
                                        CET               
                                                                 
                   CURRENCIE                                     
                   S                                      
                              Latest    Previou  Daily    Change
                                        s                 
                              bid       close    change   in 2020
 EURCZK  Czech                 26.6440  26.6550   +0.04%   -4.55%
 =       crown                                            
 EURHUF  Hungary              346.0000  345.700   -0.09%   -4.29%
 =       forint                               0           
 EURPLN  Polish                 4.4563   4.4665   +0.23%   -4.49%
 =       zloty                                            
 EURRON  Romanian               4.8410   4.8411   +0.00%   -1.09%
 =       leu                                              
 EURHRK  Croatian               7.5683   7.5755   +0.10%   -1.62%
 =       kuna                                             
 EURRSD  Serbian              117.5600  117.620   +0.05%   +0.01%
 =       dinar                                0           
         Note:     calculated from               1800            
         daily                                   CET      
         change                                           
                                                                 
                   STOCKS                                        
                              Latest    Previou  Daily    Change
                                        s                 
                                        close    change   in 2020
 .PX     Prague                 927.92  927.970   -0.01%  -16.83%
                                              0           
 .BUX    Budapest             37121.40  37279.8   -0.42%  -19.45%
                                              2           
 .WIG20  Warsaw                1796.41  1807.85   -0.63%  -16.45%
 .BETI   Buchares              8614.83  8707.34   -1.06%  -13.66%
         t                                                
 .SBITO  Ljubljan               847.99   850.54   -0.30%   -8.41%
 P       a                                                
 .CRBEX  Zagreb                1640.76  1640.76   +0.00%  -18.67%
 .BELEX  Belgrade  <.BELEX15    670.42   669.67   +0.11%  -16.37%
 15                >                                      
 .SOFIX  Sofia                  457.51   459.87   -0.51%  -19.47%
                                                                 
                   BONDS                                         
                              Yield     Yield    Spread   Daily
                              (bid)     change   vs Bund  change
                                                          in
         Czech                                            spread
         Republic                                         
 CZ2YT=    2-year  <CZ2YT=RR    0.1330   0.0150   +082bp    +2bps
 RR                >                                   s  
 CZ5YT=    5-year  <CZ5YT=RR    0.3430  -0.1550   +100bp   -15bps
 RR                >                                   s  
 CZ10YT            <CZ10YT=R    0.8540   0.0480   +127bp    +5bps
 =RR     10-year   R>                                  s  
         Poland                                                  
 PL2YT=    2-year  <PL2YT=RR    0.2070  -0.0380   +089bp    -3bps
 RR                >                                   s  
 PL5YT=    5-year  <PL5YT=RR    0.7890  -0.0210   +145bp    -2bps
 RR                >                                   s  
 PL10YT            <PL10YT=R    1.3810  -0.0420   +180bp    -4bps
 =RR     10-year   R>                                  s  
                                                                 
                   FRA                                           
                              3x6       6x9      9x12     3M
                                                          interba
                                                          nk
         Czech             <      0.31     0.33     0.35     0.34
         Rep       PRIBOR=>                               
         Hungary           <      0.78     0.73     0.70     0.89
                   BUBOR=>                                
         Poland            <      0.26     0.26     0.28     0.27
                   WIBOR=>                                
         Note: FRA quotes are for ask                            
         prices                                           
         ***********************************************         
         ***************                                  
    



 (Additional reporting by Jason Hovet in Prague
Editing by Mark Heinrich)
  
 
 
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