CEE MARKETS-Romanian leu flat after govt friction, most shares move in tight range

  • 4/15/2021
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BUCHAREST, April 15 (Reuters) - The Romanian leu was flat on Thursday after Liberal Prime Minister Florin Citu fired the health minister and potentially endangered his coalition government, while other central European currencies and stocks moved in a tight range. The dismissal of Health Minister Vlad Voiculescu marks the first big conflict in the centre-right governing coalition formed after a parliamentary election in December, as his junior USR-Plus party was blindsided by the decision. At 0945 GMT, the leu was flat against the euro at 4.9255 and bluechip index traded 0.1% higher, as markets bet political tensions would die down. "It is highly unlikely that USR-PLUS will ... force the collapse of the ruling coalition, in the middle of peak COVID-19 hospitalizations," JP Morgan said in a note. "A functioning government and majority are highly needed at this time." "As long as the majority in parliament survives, ... there are no meaningful macro implications." Romanian debt managers would tender 500 million lei worth of October 2023 treasury bonds later in the day. "The political crisis is coming at a bad moment," Commerzbank said in a note. "The coalition government had only just managed to convince the rating agencies that it is being serious about consolidating the household budget that was getting out of control." Elsewhere, the Czech crown was up 0.1% against the euro, while the Polish zloty edged 0.1% lower. The Hungarian forint slid 0.1% and was trading at 359.1 to the euro. "The forint is at important levels. The next resistance level after that is 360," brokerage Equilor wrote in a note. Hungary"s biggest lender OTP is in talks to buy Slovenian bank Nova KBM from private equity group Apollo in a deal worth roughly 1 billion euros ($1.2 billion), people close to the matter said. Budapest"s bluechip index was up 0.3% on the day. CEE SNAPSHO AT MARKETS T 1210 CET CURRENC IES Latest Previou Daily Change s bid close change in 2021 Czech Hungary 0 0 Polish Romanian Croatian Serbian 0 0 Note: calculated from 1800 daily CET change Latest Previou Daily Change s close change in 2021 Prague 1096.80 1095.28 +0.14% +6.78% 00 Budapest 42751.4 42514.9 +0.56% +1.53% 4 4 Warsaw 2008.91 2011.96 -0.15% +1.26% Buchares 11134.0 11133.4 +0.01% +13.55 t 3 6 % Ljubljan <.SBITOP 1037.13 1034.68 +0.24% +15.13 a > % Zagreb 1888.04 1886.25 +0.09% +8.55% Belgrade <.BELEX1 758.54 752.56 +0.79% +1.33% 5> Sofia 508.35 506.32 +0.40% +13.59 % Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year s 5-year s s Poland 2-year s 5-year s s FORWARD 3x6 6x9 9x12 3M interba nk Czech 0.45 0.64 0.91 0.36 Rep Hungary 0.93 1.09 1.26 0.79 Poland 0.23 0.25 0.34 0.21 Note: are for ask FRA prices quotes ********************************************* ***************** (Reporting by Luiza Ilie in Bucharest and Anita Komuves in Budapest; Editing by Rashmi Aich)

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