WARSAW, June 2 (Reuters) - Central European currencies rose
on Tuesday, continuing a strong run supported by increased
risk-appetite in global markets as investors bet that the worst
of the economic pain caused by the coronavirus crisis may have
passed.
More and more countries are taking steps to ease their
lockdowns and many economists believe the global economy will
start to recover after a big hit in the second quarter.
"It was a very bad second quarter but I think the belief in
the market is that it was related mainly the start of the second
quarter, to April and from May onwards there should be some
gradual improvement," said Radomir Jac, chief economist for
Generali Investments CEE.
At 0940 GMT the Czech Crown was 0.56% firmer
against the euro at 26.596, its strongest since March 16, when
it suffered its heaviest losses in the coronavirus outbreak.
The Hungarian forint strengthened 0.14% to 344.40.
The Polish zloty was 0.44% stronger at 4.3837, breaking
through a 4.40 support level just over a week after it crossed
4.50.
"Recently the zloty is sort of strong ignoring all the
negative economic data or the NBP lowering rates," said a
Warsaw-based currency trader.
The Romanian Leu was little changed at 4.8415.
Romania faces a rating review from S&P later this week, and
some analysts said it could see a downgrade which would put it
below investment grade.
A 40% pension increase approved by the country's previous
leftist cabinet had put pressure on ratings and financial assets
even before the new coronavirus pandemic. On Monday, Prime
Minister Ludovic Orban said that while his centrist minority
government will raise pensions this year, it will not be by 40%.
The region's main stock indices were up 0.1-0.9% as
investors focused on brightening economic prospects.
Benchmark Polish 10-year yields rose more than 3
basis points to 1.279%, continuing to increase after plummeting
on Thursday following Poland's surprise rate cut.
Czech 10-year yields fell more than 4 basis
points to 0.754%.
Hungary's central bank will not buy any government bonds
from local banks this week, it said on Tuesday, scrapping its
weekly tender for the first time since launching the purchases
last month.
CEE SNAPSHO AT
MARKETS T 1140
CET
CURRENC
IES
Latest Previou Daily Change
s
bid close change in 2020
EURCZK Czech <EURCZK 26.5960 26.7450 +0.56% -4.38%
= crown =>
EURHUF Hungary <EURHUF 344.400 344.875 +0.14% -3.85%
= forint => 0 0
EURPLN Polish <EURPLN 4.3837 4.4032 +0.44% -2.90%
= zloty =>
EURRON Romanian <EURRON 4.8415 4.8405 -0.02% -1.10%
= leu =>
EURHRK Croatian <EURHRK 7.5875 7.5885 +0.01% -1.87%
= kuna =>
EURRSD Serbian <EURRSD 117.570 117.600 +0.03% +0.00%
= dinar => 0 0
Note: calculated from 1800
daily CET
change
STOCKS
Latest Previou Daily Change
s
close change in 2020
.PX Prague 911.46 907.620 +0.42% -18.30%
0
.BUX Budapest 36180.7 35875.7 +0.85% -21.49%
8 1
.WIG20 Warsaw <.WIG20 1735.12 1733.52 +0.09% -19.30%
>
.BETI Buchares 8767.03 8701.29 +0.76% -12.13%
t
.SBITO Ljubljan <.SBITO 841.32 835.49 +0.70% -9.13%
P a P>
.CRBEX Zagreb <.CRBEX 1652.59 1636.51 +0.98% -18.08%
>
.BELEX Belgrade <.BELEX 674.70 672.05 +0.39% -15.84%
15 15>
.SOFIX Sofia <.SOFIX 459.65 461.06 -0.31% -19.10%
>
BONDS
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
CZ2YT= 2-year <CZ2YT= 0.2900 0.1890 +094bp +19bps
RR RR> s
CZ5YT= 5-year <CZ5YT= 0.3710 -0.0350 +098bp -4bps
RR RR> s
CZ10YT <CZ10YT 0.7540 -0.0470 +116bp -4bps
=RR 10-year =RR> s
Poland
PL2YT= 2-year <PL2YT= 0.2480 0.0110 +090bp +1bps
RR RR> s
PL5YT= 5-year <PL5YT= 0.8230 0.0950 +143bp +9bps
RR RR> s
PL10YT <PL10YT 1.2790 0.0360 +168bp +4bps
=RR 10-year =RR> s
FRA
3x6 6x9 9x12 3M
interba
nk
Czech <CZKFRA 0.25 0.26 0.28 0.34
Rep ><PRIBO
R=>
Hungary <HUFFRA 0.78 0.72 0.67 0.91
><BUBOR
=>
Poland <PLNFRA 0.26 0.26 0.27 0.28
><WIBOR
=>
Note: FRA quotes are for
ask prices
********************************************
******************
(Reporting by Alan Charlish in Warsaw, Jason Hovet in Prague,
Anita Komuves in Budapest and Luiza Ilie in Bucharest. Editing
by Jane Merriman)
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