CEE MARKETS-FX and stocks ease with Trump's Davos appearance in focus
WARSAW, Jan 21 (Reuters) - Central Eastern European currencies edged lower on Wednesday, with the local data calendar empty and investors awaiting U.S. President Donald Trump's address in Davos.
Geopolitical and tariff risks over U.S. threats to acquire Greenland continued to weigh on sentiment, pushing emerging market equities lower.
Trump is likely to ramp up his push for Greenland when he speaks at the World Economic Forum meeting later, facing down European opposition to his plans in the biggest fraying of transatlantic ties in decades.
Blue-chip indices in Warsaw .WIG20, Budapest .BUX and Bucharest .BETI shed about 1%.
Prague stocks .PX firmed a touch, pulled up by Czech energy firm CEZ CEZP.PR, which clawed back 4%, after massive losses in the past two days, the reasons for which traders found hard to identify and which were not correlated with other European energy firms.
The dollar cut a two-day losing streak and emerging Europe's currencies slipped slightly.
"Today, attention will still be on the global story and Davos talks, but we can expect some defusing of the risk-off mood and calming of the markets, which should keep the region at least stable," ING analysts wrote in a note.
They added that focus should shift back to regional factors in the next few days and that they maintain a bearish bias, with pricing in of more rate cuts.
The Czech crown EURCZK= traded 0.2% lower against the euro at 24.3560, continuing to weaken since the start of the week.
The Polish zloty EURPLN= eased 0.1% to 4.2280 per euro, remaining in a weaker range since last week, when the Polish central bank governor signalled possible further interest rate cuts in the coming months.
The Hungarian forint EURHUF= was also 0.1% weaker at 385.60 per euro.
Equilor analysts said euro-forint support levels were visible at 385, then 384.38, while important resistance levels were located at 385.69, then 387.40.
CEE MARKETS SNAPSHOT AT 1120 CET | |||||
CURRENCIES | Latest trade | Previous close | Daily change | Change in 2025 | |
Czech crown | EURCZK= | 24.3560 | 24.3080 | -0.20% | -0.78% |
Hungary forint | EURHUF= | 385.6000 | 385.2000 | -0.10% | -0.32% |
Polish zloty | EURPLN= | 4.2280 | 4.2255 | -0.06% | -0.29% |
Romanian leu | EURRON= | 5.0960 | 5.0922 | -0.07% | -0.04% |
Serbian dinar | EURRSD= | 117.3500 | 117.4000 | +0.04% | -0.04% |
Note: daily change calculated from 1800 CET | |||||
| |||||
STOCKS | Latest | Previous close | Daily change | Change in 2025 | |
Prague | .PX | 2663.07 | 2650.3500 | +0.48% | -0.84% |
Budapest | .BUX | 120204.90 | 121282.66 | -0.89% | +8.26% |
Warsaw | .WIG20 | 3245.39 | 3268.45 | -0.71% | +1.93% |
Bucharest | .BETI | 26287.85 | 26615.04 | -1.23% | +7.57% |
| |||||
BONDS | Yield (bid) | Yield change | Spread vs Bund | Daily change in spread | |
Czech Rep 2-year | CZ2YT=RR | 3.4600 | -0.0220 | +140bps | -1bps |
Czech Rep 5-year | CZ5YT=RR | 3.8760 | -0.0400 | +144bps | -4bps |
Czech Rep 10-year | CZ10YT=RR | 4.4670 | -0.0530 | +160bps | -5bps |
Poland 2-year | PL2YT=RR | 3.5570 | -0.0170 | +149bps | -1bps |
Poland 5-year | PL5YT=RR | 4.4550 | -0.0190 | +201bps | -2bps |
Poland 10-year | PL10YT=RR | 5.1470 | -0.0020 | +228bps | +0bps |
| |||||
FORWARD RATE AGREEMENTS | 3x6 | 6x9 | 9x12 | 3M interbank | |
Czech Rep | CZKFRA, PRIBOR= | 3.43 | 3.31 | 3.29 | 3.50 |
Poland | PLNFRA, WIBOR= | 3.48 | 3.35 | 3.33 | 3.91 |
Note: FRA quotes are for ask prices | |||||
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