CEE MARKETS-Forint climbs back near 5-month highs, CEE stocks mixed

4ig.

13/01/2023 11:21

PRAGUE, Jan 13 (Reuters) - Hungary's forint rose around
half a percent on Friday to return near multi-month highs hit at
the beginning of the week, as central European currencies firmed
after cooling U.S. inflation data weakened the dollar and
boosted risk appetite in the region.
    But central European stocks, after a strong rally to start
2023, were mixed and slow to follow global peers higher as
markets downsized expectations for Federal Reserve interest rate
hikes after data showed U.S. inflation slowed in December.
    "The higher EUR/USD today will give (currencies) a chance to
erase this week's losses," ING said.
    "Hungarian inflation numbers should be good news for forint
and we can go back below 396 EUR/HUF," it added.
    The forint  EURHUF=  was trading 0.5% up on the day at 396.0
to the euro. On Monday, it reached 393.75, the highest since
mid-August.
    Inflation in Hungary accelerated to a fresh multi-decade
peak of 24.5% last month, according to data published on Friday.
But it was below expectations, giving some hope of a lower
inflation peak while the central bank maintains stable rates. 
    The forint has been holding on the strong side of the
psychological level of 400, helped by steps from Budapest at the
end of 2022 to try to unlock European Union funds held in rule
of law disputes with Brussels. 
    The forint hit a record low 434.40 in October, before the
central bank introduced measures to shore it up, launching a
daily deposit tool with an 18% rate.
    In Poland, lawmakers on Friday adopted judicial reform which
would unblock billions of euros in EU funds withheld over an
ongoing row between Warsaw and Brussels also over the rule of
law.
    The zloty  EURPLN=  traded 0.15% stronger on the day, at
4.692 per euro, within its recent range, and analysts see little
impulse at the moment to knock it out of range-bound trading.
    "We maintain our expectations that the EUR/PLN exchange rate
will move in a sideways trend, although it will remain close to
its upper limit, i.e. the level of 4.7070," Bank Millennium
said.
    Elsewhere, the crown was up but still on the weak side of
the 24 per euro level that it crossed for the first time in 12
years earlier this month.
    Stock market gains were led by Budapest  .BUX  while Prague
 .PX  eased. Bourses have risen 6-8% in early-2023 as investors
re-positioned in the region.
                   CEE      SNAPSHO   AT                      
                   MARKETS  T        1143              
                                     CET               
                            CURRENC                           
                            IES                        
                            Latest   Previou  Daily    Change
                                     s                 
                            bid      close    change   in 2023
 EURCZK  Czech                                       
 EURHUF  Hungary                0        0           
 EURPLN  Polish                                      
 EURRON  Romanian                                    
 EURHRK  Croatian                                    
 EURRSD  Serbian                0        0           
         Note:     calculated from            1800            
         daily                                CET      
         change                                        
                                                              
                            Latest   Previou  Daily    Change
                                     s                 
                                     close    change   in 2023
 .PX     Prague     .PX     1276.10  1284.91   -0.69%   +6.19%
                                          00           
 .BUX    Budapest   .BUX    46432.4  46151.4   +0.61%   +6.03%
                                  3        7           
 .WIG20  Warsaw    <.WIG20  1932.60  1930.79   +0.09%   +7.85%
                   >                                   
 .BETI   Buchares   .BETI   12311.4  12356.0   -0.36%   +5.56%
         t                        9        3           
 .SBITO  Ljubljan  <.SBITO  1116.29  1103.99   +1.11%   +6.43%
 P       a         P>                                  
 .BELEX  Belgrade  <.BELEX   841.26   839.93   +0.16%   +2.02%
 15                15>                                 
 .SOFIX  Sofia     <.SOFIX   617.77   617.62   +0.02%   +2.71%
                   >                                   
                                                              
                            Yield    Yield    Spread   Daily
                            (bid)    change   vs Bund  change
                                                       in
         Czech                                         spread
         Republic                                      
 CZ2YT=    2-year                                s  
 CZ5YT=    5-year                                s  
 CZ10YT                                         s  
         Poland                                               
 PL2YT=    2-year                                s  
 PL5YT=    5-year                                s  
 PL10YT                                         s  
                   FORWARD                                    
                            3x6      6x9      9x12     3M
                                                       interba
                                                       nk
         Czech                                      
         Hungary                                     
         Poland                                      
         Note:     are for ask                                
         FRA       prices                              
         quotes                                        
         ********************************************         
         ******************                            
 (Reporting by Jason Hovet in Prague and Pawel Florkiewicz in
Warsaw; Editing by Shailesh Kuber)
 ((jason.hovet@thomsonreuters.com))
 
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