CEE MARKETS-Zloty hovers ahead of central bank meeting, stocks hang near highs

  • 1/12/2021
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PRAGUE, Jan 12 (Reuters) - Hungary"s forint led gains among central European currencies on Tuesday, looking to end a retreat over the past week, while the zloty slipped before a Polish central bank meeting this week, drawing more attention than usual. Stock markets also largely gained and were near their highest levels since February. The forint had risen 0.2% to 360.66 to the euro by 1125 GMT and the zloty fell 0.1% to 4.528. The zloty is forecast to gain the most in the region in 2021 although central bank comments on possible rate cuts or foreign exchange market intervention to weaken the currency are leaving many cautious in the short-term. The central bank (NBP) will decide on policy on Wednesday and rates are expected to stay on hold. Governor Adam Glapinski has said that a rate cut could be possible in the first quarter and that the bank started market interventions in mid-December. "The increase in appetite for emerging market assets is neutralized by concerns about NBP currency interventions," Bank Millennium said. Elsewhere, the Czech crown added 0.2% to 26.215 per euro and was off recent highs. Romania"s leu was steady. Czech bond yields ticked higher before a scheduled auction on Wednesday. Prague and Warsaw stocks gained but hung off of highs last seen in February which they hit on Monday. Budapest was off a similar peak. "I do not think the Hungarian stock market can stay this high or continue to climb further. It rose way too much in the past two months and there needs to be a correction in the long term," a stock trader in Budapest said. CEE SNAPSHO AT MARKETS T 1225 CET CURRENC IES Latest Previou Daily Change s bid close change in 2021 EURCZK Czech EURHUF Hungary 0 0 EURPLN Polish EURRON Romanian EURHRK Croatian EURRSD Serbian 0 0 Note: calculated from 1800 daily CET change STOCKS Latest Previou Daily Change s close change in 2021 .PX Prague 1081.04 1071.71 +0.87% +5.25% 00 .BUX Budapest 44670.3 44715.7 -0.10% +6.09% 0 9 .WIG20 Warsaw <.WIG20 2051.01 2066.97 -0.77% +3.38% > .BETI Buchares 10159.2 10073.4 +0.85% +3.61% t 3 1 .SBITO Ljubljan <.SBITO 950.66 944.32 +0.67% +5.53% P a P> .CRBEX Zagreb <.CRBEX 1808.17 1808.61 -0.02% +3.96% > .BELEX Belgrade <.BELEX 746.50 744.00 +0.34% -0.28% 15 15> .SOFIX Sofia <.SOFIX 457.11 453.92 +0.70% +2.14% > 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, Anita Komuves in Budapest and Alan Charlish in Warsaw)

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