CEE MARKETS-Warsaw shares hit four-month low, forint lowest since January

By Jason Hovet and Krisztina Than PRAGUE, March 20 (Reuters) - Hungary's forint hit an 11-week low on Monday, Warsaw's blue-chip index fell to its lowest in over four months, and Prague stocks touched a two-month low as markets digested Credit Suisse's state-backed rescue. Shares in European banking stocks fell more than 2% in early trading before recovering ground following a weekend that saw the rescue of Credit Suisse by UBS and a coordinated central bank effort to ensure global cash flows. Central Europe's banks fell, with some Polish banks dropping over 5%. Hungary's OTP Bank also shed over 5%. Among currencies, the forint led losses, stuck beyond the sensitive 400 per euro level - down 0.9% at 401.00 by 0846 GMT. The forint has given up all of its 2023 gains - which had been around 7% - this month. "Negative news have a much bigger impact on the forint, which is due to its high Beta, and to the fact that its gains since the start of the year were due to the inflow of hot money," Magyar Bankholding said. Hungary's central bank has maintained an 18% quick deposit rate since last October, when the forint hit record lows above 430 to the euro. Its base rate of 13% is also the highest in the European Union. Elsewhere, the Czech crown was down beyond the 24 per euro level and has fallen over 1% in the last week. Poland's zloty dropped 0.2% to 4.7145 to the euro. UBS's state-backed takeover of Credit Suisse Group was
orchestrated to try to restore confidence in a battered sector. Investor focus shifted on Monday to the massive hit some Credit Suisse bondholders will take. Czech central bank Vice-Governor Jan Frait was quoted as saying in an interview with Hospodarske Noviny published on Monday that Czech banks had no significant ties to Credit Suisse and that risk to the domestic sector was small or negligible. Prague's stock index fell over 1%, with dual-listed Austrian bank Erste Group losing over 3%. The fall in Czech banks Komercni Banka and Moneta Money Bank was less. Warsaw's WIG20 was down 2%.

CEE SNAPSHO AT

MARKETS T 0946

CET

CURRENC

IES

Latest Previou Daily Change s

bid close change in 2023 EURCZK Czech <EURCZK 24.0000 24.0100 +0.04% +0.66% = crown =>
EURHUF Hungary <EURHUF 401.000 397.500 -0.87% -0.39% = forint => 0 0
EURPLN Polish <EURPLN 4.7145 4.7030 -0.24% -0.53% = zloty =>
EURRON Romanian <EURRON 4.9230 4.9212 -0.04% +0.40% = leu =>
EURHRK Croatian <EURHRK 7.5330 7.5365 +0.05% +0.05% = kuna =>
EURRSD Serbian <EURRSD 117.270 117.300 +0.03% +0.03% = dinar => 0 0

Note: calculated from 1800

daily CET

change

Latest Previou Daily Change s

close change in 2023 .PX Prague 1301.41 1317.55 -1.23% +8.29% 00
.BUX Budapest 40181.5 40771.2 -1.45% -8.25% 0 4
.WIG20 Warsaw <.WIG20 1643.95 1678.16 -2.04% -8.26% >
.BETI Buchares 12110.0 12227.1 -0.96% +3.83% t 2 2
.SBITO Ljubljan <.SBITO 1180.61 1186.15 -0.47% +12.57 P a P> % .BELEX Belgrade <.BELEX 895.03 897.50 -0.28% +8.54% 15 15>
.SOFIX Sofia <.SOFIX 602.68 606.59 -0.64% +0.20% >

Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic
CZ2YT= 2-year <CZ2YT= 5.5440 0.2050 +339bp +48bps RR RR> s
CZ5YT= 5-year <CZ5YT= 4.7340 -0.0480 +285bp +20bps RR RR> s
CZ10YT <CZ10YT 4.3790 -0.0960 +242bp +7bps =RR 10-year =RR> s

Poland
PL2YT= 2-year <PL2YT= 5.7610 -0.1290 +361bp +15bps RR RR> s
PL5YT= 5-year <PL5YT= 5.7480 -0.1410 +387bp +10bps RR RR> s
PL10YT <PL10YT 5.8840 -0.1150 +393bp +5bps =RR 10-year =RR> s

FORWARD

3x6 6x9 9x12 3M interba nk Czech <CZKFRA 6.93 6.44 5.78 7.19 Rep ><PRIBO

R=>

Hungary <HUFFRA 15.05 13.34 12.13 16.31 ><BUBOR

Poland <PLNFRA 6.64 6.31 5.82 6.90 ><WIBOR

Note: are for ask

FRA prices

quotes

********************************************

******************

(Reporting by Jason Hovet in Prague and Krisztina Than in Budapest; editing by Barbara Lewis)

All emerging market news Spot FX rates Eastern Europe spot FX Middle East spot FX Asia spot FX Latin America spot FX Other news and reports World central bank news Economic Data Guide Official rates Emerging Diary Top events Diaries Diaries Index ))

Reuters

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

off-the-wire

CEE MARKETS-Warsaw shares hit four-month low, forint lowest since January

By Reuters

Reuters

Reuters

Gold is never going back to $2,000: 'That's history,' prices to 3x from here – Peter Schiff

Solid price gains for gold, silver after busy news weekend

‘Biggest economic shift since Nixon’: Major U.S. monetary policy changes coming in 12-36 months – Jack Mallers

India joins South Africa in denying BRICS currency plans after Trump’s 100% tariff threat

Silver prices breach $32/oz as bullish technicals and fundamentals suggest potential breakout