CEE MARKETS-Budapest stocks at near 1-year high, region sees pressure

  • 2/17/2021
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PRAGUE, Feb 17 (Reuters) - Budapest stocks rose to a near one-year high on Wednesday and were set for a third straight session of gains, while other bourses retreated on weaker global cues and currencies eased. The Czech crown touched a one-week low and its regional peers also weakened as the U.S. dollar gained strength. Czech bond yields ticked up ahead of a debt auction, the first since the finance ministry this week proposed a larger-than-expected upward revision to the 2021 budget gap, to a record 500 billion crowns ($23 billion). Dealers said the sale should be another test of investor appetite, which has stayed solid this year. Czech bond yields have risen faster than others in central Europe amid caution over fiscal plans and expectations the Czech central bank could become the first in the region to hike interest rates later this year. In Hungary, the forint dropped 0.1% to 359.20 per euro. The domestic stock index rose 0.3% to its highest since Feb. 24 at 1020 GMT, led by a more than 1% gain in OTP after the bank"s shares crossed a key resistance level. Central European markets have been bolstered by better-than-expected fourth-quarter economic growth in the past few weeks. The data showed the economies remained resilient despite a harsher wave of the year-old COVID-19 pandemic, although uncertainties persist due to lockdown rules. On Wednesday, official data showed that Polish corporate sector wages rose by 4.8% in January, below expectations. "Everything indicates that until the epidemic situation improves significantly and uncertainty is reduced, the domestic labor market does not seem to have the potential for a major rebound," said Kamil Luczkowski, an economist at Bank Pekao. "We expect a clear recovery in the labour market only in the second half of the year, along with a recovery in the entire economy." CEE SNAPSHO AT MARKETS T 1120 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: calcula 1800 daily ted CET change from STOCKS Latest Previou Daily Change s close change in 2021 .PX Prague 1064.05 1070.35 -0.59% +3.59% 00 .BUX Budapest 45059.2 44941.6 +0.26% +7.01% 5 5 .WIG20 Warsaw <.WIG20 1993.22 2004.54 -0.56% +0.47% > .BETI Buchares 10502.5 10535.5 -0.31% +7.11% t 4 0 .SBITO Ljubljan <.SBITO 941.40 934.92 +0.69% +4.50% P a P> .CRBEX Zagreb <.CRBEX 1831.52 1833.87 -0.13% +5.30% > .BELEX Belgrade <.BELEX 740.03 739.48 +0.07% -1.15% 15 15> .SOFIX Sofia <.SOFIX 499.57 499.09 +0.10% +11.63 > % 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 Anna Wlodarczak-Semczuk in Warsaw; Editing by Aditya Soni)

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