CEE MARKETS-Prague stocks hit fresh pre-COVID high, FX stumbles

  • 4/6/2021
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PRAGUE, April 6 (Reuters) - Central Europe stock markets firmed on Tuesday after a long holiday weekend, with Prague hitting its highest since February 2020 and Warsaw touching a 3-week peak, while currencies stumbled. The region"s equities rose as world stocks hit record highs on the back of supportive economic data out of the United States and China. Currencies, though, gave up some gains won in thinned-out trading over the Easter holiday. The Czech crown slipped 0.2% on the day to 26.06 to the euro after breaking the psychological 26 level on Monday - when local markets were closed - for the first time since Feb. 24. One dealer said the crown could make another attempt at that level if the better global mood persisted. Similarly, the Hungarian forint fell back after touching the 360 per euro level, which is just behind its 90-day moving average of 360.6. It was bid 0.3% lower at 361.55 by 0856 GMT. "The 360-level will stop the strengthening of the forint, it will maybe strengthen a bit further than that for a few days, but will not significantly break it as fundamentals have not changed," a Budapest-based FX trader said. In Poland, markets are turning attention to a Monetary Policy Council (MPC) rate-setting meeting on Wednesday. All 18 analysts polled by Reuters expect rates to remain on hold. However, with flash inflation data for March above analysts" estimates, markets will pay close attention to any comments on price pressure, as well as seeing if there is a change in language as regards the zloty currency, given its recent depreciation. The zloty dropped a quarter of a percent to 4.603 to the euro on Tuesday. Romania"s leu was down a touch at 4.9175 after its fall beyond the 4.90 level last week. Also on Tuesday, Poland"s finance ministry was due to announce bonds for a Thursday auction, which PKO analysts said could help steepen the curve. "In the coming days ... the yields of 10-year bonds should rise above 1.65%," they said. CEE SNAPSHO AT MARKETS T 1056 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 1099.90 1091.97 +0.73% +7.08% 00 .BUX Budapest 44705.7 44242.9 +1.05% +6.17% 3 3 .WIG20 Warsaw <.WIG20 1991.78 1954.38 +1.91% +0.39% > .BETI Buchares 11254.7 11273.2 -0.16% +14.78 t 0 3 % .SBITO Ljubljan <.SBITO 990.54 994.62 -0.41% +9.96% P a P> .CRBEX Zagreb <.CRBEX 1880.57 1876.58 +0.21% +8.12% > .BELEX Belgrade <.BELEX 741.95 751.95 -1.33% -0.89% 15 15> .SOFIX Sofia <.SOFIX 501.51 499.98 +0.31% +12.06 > % 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, Alan Charlish in Warsaw and Anita Komuves in Budapest; Editing by Alison Williams)

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