BUCHAREST, Sept 7 (Reuters) - Emerging European stocks
tracked broader markets higher on Monday as sentiment recovered
after a batch of middling economic data last week lifted hopes
that the European Central Bank would maintain an accommodative
stance to support inflation.
Traders also took stock of the latest U.S. jobs data and
prepared for the ECB meeting on Thursday to see if policymakers
will introduce yet more stimulus.
By 0905 GMT, Prague's bluechip index rose 0.9% on the
day, Bucharest gained 0.7%, Warsaw climbed 0.6%
and Budapest edged up 0.3%.
In Prague, shares of artificial textile maker PFNonwovens
rose more than 10% after the company said its majority
shareholder would launch a process for the mandatory buyout of
minority shareholders.
Emerging European currencies were searching for a direction
after a rally in the U.S. dollar overshadowed the region last
week.
The U.S. Labour Department report showed that U.S.
employment growth slowed and permanent job losses increased as
government funding started running out. Still, the jobless rate
fell to 8.4% from 10.2% in July.
Investors are not expecting any policy changes at Thursday's
ECB meeting, but will be listening closely for anything said
about the euro after a blistering rally that has likely unnerved
some policymakers.
Data showed German industrial output rose far less than
expected in July, suggesting Europe's largest economy faces a
slow return to production levels that preceded the crisis
unleashed by the coronavirus crisis.
The Hungarian forint was 0.2% stronger on the day,
trading at 360.2400 per euro, but hovering near the five-month
lows it touched last week. The currency is at its weakest since
climbing back from a record low set in April, during the first
wave of the pandemic.
"The forint has been underperforming its regional peers in
the past month, and this underperformance is also significant if
we look at the entire year," CIB Bank said in a note.
"This suggest that there are country-specific factors behind
the currency's movements as well," the note said, mentioning
high inflation, weak second-quarter GDP data, the central bank’s
commitment to relatively low interest rates and a jump in the
budget deficit.
Hungary's recovery from the coronavirus crisis will likely
be slower than previously expected, two central bank sources
told Reuters, adding that the bank was nearing its limits with
tools to stimulate the economy.
The Romanian leu was flat against the euro at
4.8545, but near its lowest level since March.
Analysts said a failed no-confidence vote against the
centrist minority government last week and setting Dec. 6 as the
date for a parliamentary election had dispelled some political
uncertainties and were driving debt yields lower.
Romanian debt managers tender 500 million lei ($121.91
million) worth of Nov. 2024 treasury bonds on Monday.
Elsewhere in the region, the Polish zloty was up
0.3% against the euro, while the Czech crown was 0.1%
weaker at 26.51.
CEE SNAPSHO AT
MARKETS T 1117
CET
CURRENC
IES
Latest Previou Daily Change
s
bid close change in 2020
Czech <EURCZK 26.5100 26.4800 -0.11% -4.07%
crown =>
Hungary <EURHUF 360.150 360.790 +0.18% -8.05%
forint => 0 0
Polish <EURPLN 4.4575 4.4682 +0.24% -4.51%
zloty =>
Romanian <EURRON 4.8550 4.8540 -0.02% -1.37%
leu =>
Croatian <EURHRK 7.5390 7.5385 -0.01% -1.24%
kuna =>
Serbian <EURRSD 117.500 117.540 +0.03% +0.06%
dinar => 0 0
Note: calculated from 1800
daily CET
change Latest Previou Daily Change
s
close change in 2020
Prague 911.25 902.620 +0.96% -18.32%
0
Budapest 34978.9 34836.8 +0.41% -24.10%
8 2
Warsaw <.WIG20 1771.17 1758.11 +0.74% -17.62%
>
Buchares 9043.56 8993.80 +0.55% -9.36%
t
Ljubljan <.SBITO 852.71 838.08 +1.75% -7.90%
a P>
Zagreb <.CRBEX 1602.14 1608.77 -0.41% -20.59%
>
Belgrade <.BELEX 688.27 695.36 -1.02% -14.15%
15>
Sofia <.SOFIX 435.11 435.11 +0.00% -23.42%
> Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
2-year <CZ2YT= 0.1960 0.0220 +089bp +1bps
RR> s
5-year <CZ5YT= 0.6880 -0.0420 +138bp -5bps
RR> s
<CZ10YT 1.1090 -0.0190 +158bp -3bps
10-year =RR> s
Poland
2-year <PL2YT= 0.1170 -0.0320 +081bp -4bps
RR> s
5-year <PL5YT= 0.7360 -0.0030 +143bp -1bps
RR> s
<PL10YT 1.4170 0.0100 +188bp +0bps
10-year =RR> s
FORWARD
3x6 6x9 9x12 3M
interba
nk
Czech <CZKFRA 0.37 0.38 0.45 0.34
Rep ><PRIBO
R=>
Hungary <HUFFRA 0.78 0.85 0.90 0.62
><BUBOR
=>
Poland <PLNFRA 0.21 0.20 0.21 0.23
><WIBOR
=>
Note: are for ask
FRA prices
quotes
********************************************
******************
(Reporting by Luiza Ilie in Bucharest, Anita Komuves in
Budapest and Jason Hovet in Prague; Editing by Sherry
Jacob-Phillips)
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