CEE MARKETS-Stocks fall as new data reveals scale of virus hit
By Anita Komuves BUDAPEST, May 21 (Reuters) - Central European stock markets eased on Thursday as markets around the world switched into risk-off mood and fresh data in the region showed the devastating effects of the pandemic, with Polish industrial output dropping 24.7% year-on-year in April. The export-driven economies of the CEE region have been hit hard by the lockdown measures introduced to curb the spread of the coronavirus. The International Monetary Fund forecast that economies in the region will contract by 3% to 7% this year due to the pandemic. Equities in the region were down with Prague's blue chip index leading losses by dropping 0.74% by 0726 GMT. Warsaw was down 0.4% while Budapest eased 0.3%. Bucharest's stock market was down 0.2%. Currencies were mostly stable with the Czech crown firming 0.3% to 27.230 versus the euro. The Polish zloty and the Romanian leu were little moved. The Hungarian forint firmed 0.06% to 349.650 against the euro. The currency has been trading near the 350 level for the past few sessions. "The international mood and possible further steps from the NBH could give a new direction to the forint," an FX trader in Budapest said. "Many people expect policy loosening from the central bank sooner or later, a lowering of the interest rate on the one-week deposit tender, or that the bank accepts a smaller amount of bids to boost liquidity," he added. The NBH holds its one-week deposit tender later today. The NBH has been offering the facility at the 0.9% since it was introduced. In a Reuters poll some economists said the bank might lower the interest rate on the facility later this year if the forint remains stable and the scale of damage to the economy from the pandemic gets clearer. ** For an interactive graphic on CEE economic developments: reut.rs/3exsJHO CEE SNAPSHO AT MARKETS T 0926 CET CURRENC IES Latest Previou Daily Change s bid close change in 2020 EURCZK Czech <EURCZK 27.2300 27.3200 +0.33% -6.60% = crown => EURHUF Hungary <EURHUF 349.650 349.850 +0.06% -5.29% = forint => 0 0 EURPLN Polish <EURPLN 4.5349 4.5352 +0.01% -6.14% = zloty => EURRON Romanian <EURRON 4.8440 4.8434 -0.01% -1.15% = leu => EURHRK Croatian <EURHRK 7.5750 7.5765 +0.02% -1.71% = kuna => EURRSD Serbian <EURRSD 117.530 117.570 +0.03% +0.03% = dinar => 0 0 Note: calculated from 1800 daily CET change Latest Previou Daily Change s close change in 2020 .PX Prague 872.10 878.570 -0.74% -21.83% 0 .BUX Budapest 35535.4 35635.5 -0.28% -22.89% 8 2 .WIG20 Warsaw <.WIG20 1646.26 1652.64 -0.39% -23.43% > .BETI Buchares 8403.91 8419.75 -0.19% -15.77% t .SBITO Ljubljan <.SBITO 809.74 809.74 +0.00% -12.54% P a P> .CRBEX Zagreb <.CRBEX 1581.30 1581.30 +0.00% -21.62% > .BELEX Belgrade <.BELEX 673.50 673.50 +0.00% -15.99% 15 15> .SOFIX Sofia <.SOFIX 448.91 449.45 -0.12% -20.99% > Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic CZ2YT= 2-year <CZ2YT= 0.1250 -0.0080 +080bp +0bps RR RR> s CZ5YT= 5-year <CZ5YT= 0.3750 -0.0770 +104bp -8bps RR RR> s CZ10YT <CZ10YT 0.8280 0.0370 +131bp +5bps =RR 10-year =RR> s Poland PL2YT= 2-year <PL2YT= 0.5410 -0.0230 +122bp -2bps RR RR> s PL5YT= 5-year <PL5YT= 0.9330 0.0000 +160bp +0bps RR RR> s PL10YT <PL10YT 1.3850 0.0000 +186bp +1bps =RR 10-year =RR> s FORWARD 3x6 6x9 9x12 3M interba nk Czech <CZKFRA 0.23 0.24 0.25 0.34 Rep ><PRIBO R=> Hungary <HUFFRA 0.87 0.83 0.79 1.01 ><BUBOR => Poland <PLNFRA 0.40 0.37 0.37 0.68 ><WIBOR => Note: are for ask FRA prices quotes (Editing by Giles Elgood)
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