Views Article – Sharenet Wealth

Europe, Forex

Stocks track global markets higher, FX little changed

BUCHAREST, July 6 (Reuters) – Emerging European stocks tracked global markets higher on Monday driven by expectations that a strong Chinese economic rebound will support wider growth, while currencies were mixed. By 0900 GMT, Budapest’s bluechip index was up by 1.2% on the day, Warsaw’s by 1.1% and Bucharest’s by 0.4%. Czech markets were closed for a national holiday. Like the rest of the world, central and eastern European states are tackling economic recovery and facing further slowdowns as a result of a potential second wave of the new coronavirus pandemic. By 0900 GMT, the Polish zloty and Romanian leu were flat against the euro, while the Hungarian forint edged 0.1% lower at 352.9100. “The zloty … has consistently remained stable around 4.46 per euro, although the pressure to weaken it is gradually increasing along with growing concerns about the second wave of COVID-19 and, as a consequence, a return to economically destructive restrictions,” Millennium Bank said in a note. In Hungary, May retail sales fell by an annual 2.1% but the decline was slower than previously expected, Erste Bank said in a research note, as a national lockdown was gradually lifted. “There could be further correction in the forint’s exchange rate,” Equilor said in a note. “We expect some further strengthening of the forint according to the technical picture, there is a significant support level between 347.50 and 350 versus the euro.” Elsewhere in the region, the Croatian kuna was flat against the euro after a national election which saw the ruling centre-right Croatian Democratic Union (HDZ) in a comfortable position to form a ruling coalition. “The outcome of the elections should be positive for financial markets with more focus on the ERM II convergence play benefiting the HRK and sovereign Eurobonds,” Raiffeisen said in a note. CEE SNAPSHO AT MARKETS T 1124 CET CURRENC IES Latest Previou Daily Change s bid close change in 2020 Czech <EURCZK 26.7000 26.6950 -0.02% -4.75% crown => Hungary <EURHUF 352.970 352.460 -0.14% -6.18% forint => 0 0 Polish <EURPLN 4.4690 4.4688 -0.00% -4.76% zloty => Romanian <EURRON 4.8364 4.8360 -0.01% -0.99% leu => Croatian <EURHRK 7.5550 7.5560 +0.01% -1.45% kuna => Serbian <EURRSD 117.550 117.640 +0.08% +0.02% dinar => 0 0 Note: calculated from 1800 daily CET change Latest Previou Daily Change s close change in 2020 Prague 938.00 938.000 +0.00% -15.92% 0 Budapest 36318.7 35931.5 +1.08% -21.19% 6 2 Warsaw <.WIG20 1820.78 1800.96 +1.10% -15.32% > Buchares 8694.21 8668.05 +0.30% -12.86% t Ljubljan <.SBITO 853.66 848.66 +0.59% -7.80% a P> Zagreb <.CRBEX 1624.57 1624.65 -0.00% -19.47% > Belgrade <.BELEX 661.75 666.09 -0.65% -17.46% 15> Sofia <.SOFIX 449.61 449.82 -0.05% -20.86% > Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year <CZ2YT= -0.0030 -0.0080 +068bp -1bps RR> s 5-year <CZ5YT= 0.3460 -0.0880 +103bp -9bps RR> s <CZ10YT 0.7810 0.0060 +122bp +1bps 10-year =RR> s Poland 2-year <PL2YT= 0.1370 -0.0090 +082bp -1bps RR> s 5-year <PL5YT= 0.7370 0.0240 +142bp +3bps RR> s <PL10YT 1.3540 -0.0010 +179bp +1bps 10-year =RR> s FORWARD 3×6 6×9 9×12 3M interba nk Czech <CZKFRA 0.27 0.26 0.29 0.34 Rep ><PRIBO R=> Hungary <HUFFRA 0.64 0.62 0.58 0.71 ><BUBOR => Poland <PLNFRA 0.20 0.22 0.22 0.26 ><WIBOR => Note: are for ask FRA prices quotes ******************************************** ****************** (Reporting by Luiza Ilie in Bucharest, Alan Charlish in Warsaw and Anita Komuves in Budapest; Editing by Ed Osmond)


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