CEE MARKETS-Currencies rise on hopes for conflict de-escalation in Ukraine

Vienna Insurance Wiener Versicherung Gruppe AG

15/03/2022 11:20

WARSAW/PRAGUE, March 15 (Reuters) - Central European
currencies mostly strengthened on Tuesday as new positive
comments related to peace negotiations between Russia and
Ukraine gave hope for a de-escalation and brought some
stabilisation to the markets.
    Ukrainian and Russian negotiators were set to resume the
talks on Tuesday. Earlier both sides cited progress, even though
Russia attacked a base near the Polish border and fighting raged
elsewhere.  urn:newsml:reuters.com:*:nL2N2VI040
    "Investors seem unconcerned about the attack on the target,
in Ukraine 6 km from the Polish border," Adam Antoniak, an
economist at ING Bank Slaski in Warsaw, said in a morning note.
    "There are also more and more comments about the
rapprochement of the positions in the peace negotiations between
Russia and Ukraine, giving hope for a quick end to the war. As a
result, the €/US$ pair rose yesterday ... CEE currencies also
appreciated considerably," he said.
    Central Europe has been hit hard by a global flight to safer
assets following Russia's invasion of Ukraine on Feb. 24, which
prompted a raft of harsh Western sanctions against Moscow, but
this week markets were gradually returning to normal after an
initial turmoil.
    The Polish zloty  EURPLN=  and Hungarian forint  EURHUF= 
led the rises and both currencies were strengthening by 0.55% to
4.72 and 371.68 per euro respectively as of 0930 GMT. 
    Markets in Hungary were closed due to a national holiday.
    The Czech crown  EURCZK=  was 0,34% firmer at 24.802 per
euro as of 0909 GMT.
    The Czech Republic and Poland both reported on Tuesday high
rises in prices, underscoring inflation pressure that has led
regional central banks to tighten the monetary policy.
     Czech producer prices (PPI) jumped 21.3% year on year in
February, a fresh record there, setting a fresh record in the
country's history starting in 1993.  urn:newsml:reuters.com:*:nS8N2S602H
    Poland said inflation in February was at 8.5%, slower than
in January but still well above the Polish central bank's
inflation target of 2.5%, plus or minus one percentage point.
 urn:newsml:reuters.com:*:nS8N2V0075
    Meanwhile, Central European shares were mixed. The Prague
stock exchange's main index PX  .PX  was falling by 0.86%, but
the Warsaw bourse  .WIG20  was up by 0,26%.
    Czech electricity producer CEZ  CEZP.PR  reported solid
results and gave strong guidance, but it was not enough to
offset the decline of local financial companies.  urn:newsml:reuters.com:*:nL5N2VI18Z
    Erste  ERST.PR  and Komercni Banka  BKOM.PR  were falling by
3.31% and 1.67% respectively.
    

                 CEE      SNAPSH   AT                   
                 MARKETS  OT      1113            
                                  CET             
                          CURREN                        
                          CIES                    
                          Latest  Previo  Daily   Change
                                  us              
                          bid     close   change  in
                                                  2022
 EURCZK  Czech               0       0       %       %
 EURHUF  Hungar             00      00       %  
         forint                                   
 EURPLN  Polish                              %  
 EURRON  Romani                                 
 EURHRK  Croati                              %  
         kuna                                     
 EURRSD  Serbia             00      00       %  
         dinar                                    
         Note:   calculated from          1800          
         daily                            CET     
         change                                   
                                                        
                          Latest  Previo  Daily   Change
                                  us              
                                  close   change  in
                                                  2022
 .PX     Prague   .PX     1303.9  1315.1  -0.85%  #VALUE
                               6     200            !
 .BUX    Budape   .BUX    42905.  42905.   +0.00  -15.41
         st                   55      55       %       %
 .WIG20  Warsaw  <.WIG20  1966.0  1972.1  -0.31%  -13.27
                 >             1       4               %
 .BETI   Buchar   .BETI   12170.  12330.  -1.30%  -6.82%
         est                  38      48          
 .SBITO  Ljublj  <.SBITO  1089.7  1090.1  -0.04%  -13.20
 P       ana     P>            4       6               %
 .CRBEX  Zagreb  <.CRBEX  1992.2  1988.7   +0.17  -4.19%
                 >             3       6       %  
 .BELEX  Belgra  <.BELEX  814.83  830.93  -1.94%  -0.72%
 15      de      15>                              
 .SOFIX  Sofia   <.SOFIX  590.22  589.73   +0.08  -7.15%
                 >                             %  
                                                        
                          Yield   Yield   Spread  Daily
                          (bid)   change  vs      change
                                          Bund    in
         Czech                                    spread
         Republ                                   
         ic                                       
 CZ2YT=                                    ps  
 CZ5YT=                             0      ps  
 CZ10YT                                   ps  
         r                                        
         Poland                                         
 PL2YT=                                    ps  
 PL5YT=                             0      ps  
 PL10YT                                   ps  
         r                                        
                 FORWARD                                
                          3x6     6x9     9x12    3M
                                                  interb
                                                  ank
         Czech                                 
         Hungar                                 
         Poland                                 
         Note:   are for ask                            
         FRA     prices                           
         quotes                                   
         ***************************************        
         ***********************                  
    
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 (Reporting by Alicja Ptak in Warsaw and Robert Muller in
Prague; Editing by Maju Samuel)
 ((alicja.ptak@thomsonreuters.com ; +48 697 870 031; Reuters
Messaging: alicja.ptak.thomsonreuters.com@reuters.net   
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