CEE MARKETS-Currencies slip as data disappoints – Yahoo Finance

WARSAW, June 9 (Reuters) – Central European currencies and stocks eased on Tuesday, as a risk-off mood prevailed in markets after fresh negative data from Europe’s economic powerhouse Germany soured the mood ahead of Wednesday’s U.S. Federal Reserve meeting. German exports and imports slumped in April, posting their biggest declines since records began in 1990 as demand dried up in the coronavirus lockdown. On Monday data showed German industrial output posted its steepest plunge on record in April. “Yesterday and today we had some poor German data,” said Marcin Sulewski, an economist at Santander Bank Polska. “I think the reason for weaker CEE currencies is that the market sentiment today at the beginning of the day is much worse than we got used to in the previous weeks.” At 0933 GMT the Polish zloty was down 0.28% against the euro at 4.443. The Hungarian forint fell 0.32% to 344.90 and the Czech crown softened 0.19% to 26.655. “It’s a general risk-off in the market… we are in the middle of the recent (euro/zloty) range of 4.42-4.45 so nothing major going on. I would say that the zloty is pretty stable right now and resilient,” said a Warsaw-based currency trader. The region’s stock indices were down, in line with the rest of Europe, with Prague’s PX index . falling 1.73% and Warsaw’s WIG 20 down 1.32%. Shares of state-run mining company JSW continued to be the worst performers in Warsaw for a second day, falling 3.5%. On Monday Poland’s government announced the closure of two coal mines owned by JSW and 10 mines from PGG group for three weeks to stop the spread of the coronavirus among miners. Benchmark Polish 10-year yields fell 6 basis points to 1.4250% ahead of a bond-buying operation by the central bank on Wednesday. Czech 10-year yields were up over 9 basis points at 1.061%. 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 second time since launching the purchases last month,. The bank launched the tenders in early May as part of efforts to shore up the economy hit by the coronavirus pandemic. CEE MARKETS SNAPSHOT AT 1133 CET CURRENCIES Latest Previous Daily Change bid close change in 2020 EURCZK= Czech 26.6550 26.6050 -0.19% -4.59% crown EURHUF= Hungary 344.9000 343.8100 -0.32% -3.99% forint EURPLN= Polish 4.4430 4.4305 -0.28% -4.20% zloty EURRON= Romanian 4.8380 4.8330 -0.10% -1.03% leu EURHRK= Croatian 7.5600 7.5630 +0.04% -1.52% kuna EURRSD= Serbian 117.5200 117.5500 +0.03% +0.04% dinar Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2020 .PX Prague 946.10 962.7100 -1.73% -15.20% .BUX Budapest 37781.69 38198.17 -1.09% -18.01% .WIG20 Warsaw 1817.03 1841.25 -1.32% -15.49% .BETI Bucharest 8854.07 8848.75 +0.06% -11.26% .SBITOP Ljubljana 874.31 874.29 +0.00% -5.57% .CRBEX Zagreb 1657.34 1661.11 -0.23% -17.85% .BELEX15 Belgrade 678.61 675.46 +0.47% -15.35% .SOFIX Sofia 464.89 465.84 -0.20% -18.17% BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic CZ2YT=RR 2-year 0.1290 0.0360 +075bp +4bps s CZ5YT=RR 5-year 0.5100 -0.1000 +109bp -9bps s CZ10YT=RR 10-year 1.0610 0.0930 +140bp +11bps s Poland PL2YT=RR 2-year 0.2460 -0.0050 +087bp +0bps s PL5YT=RR 5-year 0.8390 -0.0300 +142bp -2bps s PL10YT=RR 10-year 1.4250 -0.0610 +176bp -5bps s FORWARD RATE AGREEMENT 3×6 6×9 9×12 3M interbank Czech Rep 0.30 0.34 0.36 0.34 Hungary 0.80 0.75 0.71 0.90 Poland 0.24 0.26 0.28 0.27 Note: FRA are for ask prices quotes (Reporting by Alan Charlish in Warsaw and Anita Komuves in Budapest; Editing by Kirsten Donovan)

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