(Reuters) – PRAGUE, June 29 (Reuters) – Central European stock markets fell on Tuesday, weighed down by fears that coronavirus outbreaks in Asia might stymie economic recovery, while Poland’s zloty weakened ahead of a critical inflation report this week.
As central European currencies stalled after recent gains amid market bets on higher interest rates, the zloty was the region’s biggest mover.
Following interest rate hikes in Hungary and the Czech Republic this month, markets will be watching for a Polish flash inflation data for June due on Wednesday to see if Poland’s central bank will take a more hawkish tone.
“In the following days, we can expect a resumption… towards June (zloty highs), especially if Wednesday’s CPI reading reignites speculation about monetary policy tightening,” said Konrad Bialas, head economist at DM TMS Brokers.
For the time being, the zloty is stuck below 4.50 to the euro, trading at 4.516 at 0949 GMT, and a dealer indicated that psychological level will act as a barrier to future rises.
In other currency markets, the Hungarian forint fell by less than 0.1 percent, while the Czech crown rose by less than 0.1 percent in sideways trading.
Both countries’ central banks raised interest rates last week, becoming the first in the European Union to do so in response to the bloc’s fastest-growing inflation rate. The announcements came just over a year after the coronavirus epidemic caused rate-setters to make emergency rate cuts to protect their economies.
According to Eurostat, Poland’s inflation rate was 4.6 percent in May, the second highest in the EU behind Hungary. Poland’s central bank, on the other hand, has maintained a dovish stance.
Warsaw blue chips led stock market losses, tumbling 0.9 percent. Budapest and Prague also fell as a result of the global downturn.
Fears of the highly infectious Delta variety spreading are dampening morale at a time when markets are jittery following the US Federal Reserve’s surprise hawkish stance earlier this month.
T 1149 CET CEE SNAPSHO T 1149 CET CEE SNAPSHO T 1149 CET CEE SNAPSHO T 1149 CET C
CURRENCIES CURRENCIES CURRENCIES CURRENCIES CURRENCIES CURRENCIES CURRENCIES CURRENCIES
EURCZK Czech 25.4300 25.4480 +0.07% +3.14% = crown => EURCZK 25.4300 25.4480 +0.07% +3.14% = crown
EURHUF 351.010 350.775 -0.07% +3.34% = forint EURHUF 351.010 350.775 -0.07% +3.34% = forint EURHUF 351.010 350.775 -0.07% +3.34% = forint EURHUF 351.010 35 zero zero
EURPLN Polish 4.5160 4.5022 -0.31 percent +0.96 percent = zloty => EURPLN 4.5160 4.5022 -0.31 percent +0.96 percent = zloty
EURRON Romanian 4.9262 4.9272 +0.02 percent -1.24 percent = leu => EURRON Romanian 4.9262 4.9272 +0.02 percent -1.24 percent = leu
Croatian kuna EURHRK 7.4930 7.4953 +0.03 percent +0.73 percent = kuna EURHRK 7.4930 7.4953 +0.03 percent +0.73 percent = kuna
EURRSD 117.530 117.605 EURRSD 117.530 117.605 EURRSD 117.605 EURRSD 117.605 EURRSD 117.605 EURRSD 117.605 EURRSD 117.605 EURRSD 117.60 zero zero
Note: STOCKS Latest Prevou Daily Changes closing change in 2021 was used to calculate 1800 daily ted CET change.
PX Prague 1160.39 1160.86 -0.04 percent +12.97 00 percent PX Prague 1160.39 1160.86 -0.04 percent PX Prague 1160.39 1160.86 -0.04 percent P
BUX Budapest 48166.4 48301.6 -0.28 percent +14.39 6 2 percent BUX Budapest 48166.4 48301.6 -0.28 percent BUX Budapest 48166.4 48301.6 -0.28 percent BUX
WIG20 Warsaw.WIG20 2265.67 2285.81 -0.88 percent +14.20 > WIG20 Warsaw.WIG20 2265.67 2285.81 -0.88 percent +14.20 > %.BETI Buchares %.BETI Buchares %.BETI Buchare 12017.9 11967.2 +10.42% +22.56 t 5 8% SBITO Ljubljan.SBITO 1134.30 1135.79 -0.13 percent +25.91 P a P>.SBITO 1134.30 1135.79 -0.13 percent +25.91 P a P>.SBITO 1134.30 1135.79 -0.13 percent +25 .CRBEX Zagreb 1995.98 2001.56 -0.28 percent +14.76 >.CRBEX 1995.98 2001.56 -0.28 percent +14.76 >.CRBEX 1995.98 2001.56 -0.28 percent +14.76 >.CRBEX 1995 percent.BELEX Belgrade.BELEX 772.26 776.94 -0.60 percent +3.16 percent 15 15>.SOFIX Sofia.SOFIX 553.90 556.14 -0.40 percent +23.77 > percent.BELEX Belgrade.BELEX 772.26 776.94 -0.60 percent +3.16 percent 15 15>.BELEX Belgrade.BELEX 772.26 776.94 -0.60 percent +3.16
Daily (bid) change in BONDS Yield Yield Spread against Bund change in Czech spread
Republic
CZ2YT= 2-year CZ2YT= 0.4190 -0.0090 +107bp -1bps RR RR> CZ2YT= 0.4190 -0.0090 +107bp -1bps RR RR> CZ2YT= 0.4190 -0.0090 +107bp -1 s CZ5YT= 5-year CZ5YT= 1.7070 -0.0170 +228bp -2bps RR RR> s CZ5YT= 1.7070 -0.0170 +228bp -2bps RR RR> s CZ5YT= 1.7070 -0.0170 +228 s CZ10YT 1.7750 -0.0340 +196bp -3bps =RR 10-year =RR> CZ10YT 1.7750 -0.0340 +196bp -3bps CZ10YT 1.7750 -0.0340 +196bp -3bps CZ10YT 1.7750 -0.0 Poland s
PL2YT= 2-year PL2YT= 0.4090 0.0000 +106bp +0bps RR RR> PL2YT= 0.4090 0.0000 +106bp +0bps RR RR> s PL5YT= 5-year RR RR> s PL5YT= 1.4340 -0.0310 +201bp -3bps RR RR> s PL5YT= 1.4340 -0.0310 +201bp -3bps RR RR> s PL5YT= 1.4 s PL10YT 1.8110 -0.0100 +200bp -1bps =RR 10-year =RR> s PL10YT 1.8110 -0.0100 +200bp -1bps =RR> s PL10YT 1.8110 -0.0100 +200bp -1bps =RR s
FRA
CZKFRA 0.95 1.36 1.63 0.66 Rep >PRIBO R=> 3×6 6×9 9×12 3M interba nk Czech CZKFRA 0.95 1.36 1.63 0.66 Rep >PRIBO R=> 3×6 6×9 9×12 3M interba nk Czech CZKFRA 0.95 1.36 1.63 0.66
HUFFRA 1.52 1.86 2.02 1.05 >BUBOR => PLNFRA 0.37 0.63 0.85 0.21 >WIBOR => Hungary HUFFRA 1.52 1.86 2.02 1.05 >BUBOR => Poland PLNFRA 0.37 0.63 0.85 0.21 >WIBOR => Hungary HUFFRA 1.52 1.86 2.02 1.05 >BUBOR
Please keep in mind that FRA quotations are for ask prices only.
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(Jason Hovet in Prague and Alan Charlish in Warsaw contributed reporting; Edmund Blair edited the piece.)/n
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