CEE MARKETS-FX, stocks drop sharply on virus worries

  • 12/21/2020
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PRAGUE, Dec 21 (Reuters) - Poland"s zloty dropped on Monday to its lowest level since early November while stock markets in central Europe were on course for their biggest one-day fall since at least October as a new coronavirus strain in Britain rattled markets. The United Kingdom stood shut off from the rest of Europe on Monday after much of the continent cut transport ties with it over fears of the new fast-spreading strain. News of the new variant, possibly up to 70% more transmissible than the original, shook markets and pushed stocks in central Europe sharply lower. Warsaw had dropped 4.5% by 1041 GMT and Budapest was down 2.7%, both showing their biggest one-day drops since the end of October. Prague fell 3.7%, on course for its biggest one-day drop since June. On currency markets, the zloty lost 1.0% to 4.525 to the euro, one trading day after the Polish central bank stepped into markets to weaken the currency in a move that led to its biggest daily drop since September. Polish rate setter Eryk Lon confirmed on Monday the central bank had intervened. The zloty stayed under pressure with the rest of the region amid the risk-off mood on Monday. Hungary"s dropped 1.0% to 361.35 per euro and the Czech crown retreated 0.6% to 26.34. Romania"s leu held steady. "The attempt in Poland to weaken the zloty has had a bit of an effect on other markets, dragging the forint along, although it must be added that trading is extremely thin so any effect is outsized," a Budapest dealer said. CEE SNAPSHO AT MARKETS T 1141 CET CURRENC IES Latest Previou Daily Change s bid close change in 2020 EURCZK Czech EURHUF Hungary 0 0 EURPLN Polish EURRON Romanian EURHRK Croatian EURRSD Serbian 0 0 Note: calcula 1800 daily ted CET change from STOCKS Latest Previou Daily Change s close change in 2020 .PX Prague 972.35 1009.23 -3.65% -12.84% 00 .BUX Budapest 40491.4 41614.9 -2.70% -12.13% 8 2 .WIG20 Warsaw <.WIG20 1864.05 1952.54 -4.53% -13.30% > .BETI Buchares 9528.48 9660.04 -1.36% -4.50% t .SBITO Ljubljan <.SBITO 890.13 895.85 -0.64% -3.86% P a P> .CRBEX Zagreb <.CRBEX 1703.49 1723.39 -1.15% -15.56% > .BELEX Belgrade <.BELEX 712.48 714.16 -0.24% -11.13% 15 15> .SOFIX Sofia <.SOFIX 443.48 442.30 +0.27% -21.94% > BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic CZ2YT= 2-year s CZ5YT= 5-year s CZ10YT s Poland PL2YT= 2-year s PL5YT= 5-year s PL10YT s FRA 3x6 6x9 9x12 3M interba nk Czech Hungary Poland Note: FRA quotes are for ask prices *********************************** *************************** (Reporting by Jason Hovet in Prague, Marton Dunai in Budapest and Alan Charlish and Pawel Florkiewicz in Warsaw, Editing by William Maclean)

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