CEE MARKETS-Polish media bill weighs on Zloty, Stock Spirits soars on CVC deal

  • 8/12/2021
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PRAGUE, Aug 12 (Reuters) - The zloty fell further on Thursday after Polish lawmakers passed a media reform bill that drew criticism from the United States, while other central European currencies strengthened on rate hike hopes. The Hungarian forint edged higher toward a one-month peak hit earlier this week while the Czech crown held steady, hovering off its own 2-week high touched on Tuesday. Both have led gains in central Europe this year - while the zloty has lost value - as the Czech and Hungarian central banks jumped ahead of other European Union monetary policymakers and began raising interest rates in June to battle inflationary pressures seen amid a recovery from the coronavirus pandemic. Poland, meanwhile, has held steady on its monetary policy and remained cautious of hurting the recovery, and political pressures are also weighing more, seen on Thursday when the zloty fell 0.3% to 4.59 to the euro in morning trade. A Polish government bill, strengthening a ban on firms from outside the European Economic Area controlling Polish broadcasters, made it through Poland"s lower house of parliament late on Wednesday and will now head to the Senate. The Polish opposition said the bill was meant to silence a U.S.-owned news channel critical of the government, leading to a swift denunciation from the United States, one of Warsaw"s most important allies. Commerzbank said due to political risks it "consider(ed) an increased PLN risk premium to be justified for the time being." Elsewhere, the forint was up 0.2% at 353.1 to the euro at 0904 GMT, finding continued support from expectations the Hungarian central bank could deliver a third interest rate increase when it meets again in August. Minutes from its July meeting release on Wednesday showed its last 30-basis-point rate increase could serve as guidance for the size of its next move. The crown, too, was steady, trading at 25.40 to the euro, buoyed by a larger-than-expected inflation s pike that has raised chances the Czech central bank may opt for a bigger-than-usual rate increases after two consecutive 25-basis-point hikes. On stock markets, Warsaw and Budapest eased but Prague jumped 1.4%, with Stock Spirits, listed in London and Prague, soaring over 40% after CVC-affiliated funds said they would buy the drinks group for about $1 billion. CEE SNAPSHO AT MARKETS T 1105 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 1270.69 1252.71 +1.44% +23.71 00 % .BUX Budapest 50253.7 50317.1 -0.13% +19.35 4 0 % .WIG20 Warsaw <.WIG20 2281.45 2283.69 -0.10% +14.99 > % .BETI Buchares 12182.6 12101.2 +0.67% +24.24 t 6 3 % .SBITO Ljubljan <.SBITO 1190.13 1182.72 +0.63% +32.11 P a P> % .CRBEX Zagreb <.CRBEX 1967.17 1963.95 +0.16% +13.10 > % .BELEX Belgrade <.BELEX 790.10 789.71 +0.05% +5.54% 15 15> .SOFIX Sofia <.SOFIX 580.08 579.50 +0.10% +29.62 > % 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 Anil D"Silva)

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