CEZ shares climbed to their highest since August on Monday before retreating, trading half a percent down on the day. However, gains in banking stocks drove up the index, which was 0.5% higher, as markets largely followed European peers upwards. On currency markets, the crown fell further from 14-year highs touched last week, and was down 0.35% on the day at 23.555 to the euro. Data on Monday showed real wages fell for a fifth consecutive quarter at the end of 2022, which will bolster the arguments of a majority of central bankers who have kept interest rates unchanged since the middle of last year. In Hungary, the forint gained 0.2% to 378.40 to lead gains in the region as a weaker dollar boosted risk appetite. Strengthened by the region's highest interest rates, the forint is up over 5% this year. Polish interest rates are likely to stay on hold this week after a central bank meeting concludes on Wednesday.
Policymakers in central Europe began aggressive hiking
cycles in 2021 before most other parts of Europe and have sought
in recent months for policy stability to ease the burden on
economies that are rapidly slowing as inflation persists.
The zloty was steady on Monday, 4.708 per euro. It
has trended stronger in recent sessions, and a Reuters poll last
week forecast it would be the region's sole gainer in the next
12 months.
"While we do not expect changes in interest rates, the
latest set of (central bank) macroeconomic forecasts...
(regarding) the timing of the first rate cut will be
interesting," Bank Millennium said.
"Potentially, therefore, it is not the rhetoric of (Governor Adam) Glapinski's comments but the bank's forecasts that may be a source of volatility in domestic assets, especially on the interest rate market."
CEE SNAPSHO AT
MARKETS T 1105
CET
CURRENC
IES
Latest Previou Daily Change s
bid close change in 2023
EURCZK Czech <EURCZK 23.5550 23.4720 -0.35% +2.56%
= crown =>
EURHUF Hungary <EURHUF 378.400 379.000 +0.16% +5.56%
= forint => 0 0
EURPLN Polish <EURPLN 4.7075 4.7085 +0.02% -0.38%
= zloty =>
EURRON Romanian <EURRON 4.9165 4.9249 +0.17% +0.53%
= leu =>
EURHRK Croatian <EURHRK 7.5330 7.5365 +0.05% +0.05%
= kuna =>
EURRSD Serbian <EURRSD 117.240 117.305 +0.06% +0.05%
= dinar => 0 0
Note: calculated from 1800
daily CET
change
Latest Previou Daily Change s
close change in 2023
.PX Prague 1427.66 1420.45 +0.51% +18.80
00 %
.BUX Budapest 44665.5 44440.4 +0.51% +1.99%
0 8
.WIG20 Warsaw <.WIG20 1863.90 1841.85 +1.20% +4.01%
>
.BETI Buchares 12464.8 12393.0 +0.58% +6.87%
t 8 6
.SBITO Ljubljan <.SBITO 1207.94 1202.90 +0.42% +15.17
P a P> %
.BELEX Belgrade <.BELEX 892.62 891.48 +0.13% +8.25%
15 15>
.SOFIX Sofia <.SOFIX 624.61 624.35 +0.04% +3.84%
>
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
CZ2YT= 2-year <CZ2YT= 5.7380 -0.3760 +254bp -37bps
RR RR> s
CZ5YT= 5-year <CZ5YT= 5.3330 -0.1040 +254bp -6bps
RR RR> s
CZ10YT <CZ10YT 5.0170 -0.1480 +236bp -9bps
=RR 10-year =RR> s
Poland
PL2YT= 2-year <PL2YT= 6.2750 -0.1040 +307bp -10bps
RR RR> s
PL5YT= 5-year <PL5YT= 6.4070 -0.1160 +361bp -8bps
RR RR> s
PL10YT <PL10YT 6.4280 -0.1130 +377bp -6bps
=RR 10-year =RR> s
FORWARD
3x6 6x9 9x12 3M interba nk Czech <CZKFRA 7.22 7.14 6.72 7.20 Rep ><PRIBO
R=>
Hungary <HUFFRA 14.73 13.03 11.88 16.29 ><BUBOR
=>
Poland <PLNFRA 7.02 7.00 6.73 6.95 ><WIBOR
=>
Note: are for ask
FRA prices
quotes
********************************************
******************
(Reporting by Jason Hovet in Prague, Anna Wlodarczak-Semczuk in
Warsaw, and Krisztina Than in Budapest; editing by Barbara
Lewis)
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