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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