U.S. markets close in 57 minutes
  • S&P 500

    4,478.28
    -2.42 (-0.05%)
     
  • Dow 30

    34,794.30
    -20.09 (-0.06%)
     
  • Nasdaq

    15,178.65
    +17.12 (+0.11%)
     
  • Russell 2000

    2,236.63
    +2.18 (+0.10%)
     
  • Crude Oil

    72.53
    -0.08 (-0.11%)
     
  • Gold

    1,754.00
    -40.80 (-2.27%)
     
  • Silver

    22.82
    -0.98 (-4.12%)
     
  • EUR/USD

    1.1759
    -0.0067 (-0.56%)
     
  • 10-Yr Bond

    1.3310
    +0.0270 (+2.07%)
     
  • GBP/USD

    1.3790
    -0.0045 (-0.33%)
     
  • USD/JPY

    109.7090
    +0.3490 (+0.32%)
     
  • BTC-USD

    47,692.54
    -374.70 (-0.78%)
     
  • CMC Crypto 200

    1,223.83
    -9.46 (-0.77%)
     
  • FTSE 100

    7,027.48
    +10.99 (+0.16%)
     
  • Nikkei 225

    30,323.34
    -188.37 (-0.62%)
     

CEE MARKETS-Zloty falls on uncertainty around FX mortgages; Czech stocks hit 13-mth high

·3 min read

By Anita Komuves BUDAPEST, March 18 (Reuters) - The Polish zloty eased to a four-month low on Thursday amid uncertainty over a pending court decision that could set the future for Swiss franc mortgages, in the latest twist to a saga that could weigh on local banks. The Polish Supreme Court was earlier expected to clarify on March 25 questions related to what banks can claim from clients if a mortgage contract is cancelled. However, the court on Thursday postponed the issuance of guidelines until April 13. "There are some worries that this decision will not be in favour of banks and so maybe they will have to change their reserves into Swiss francs," a trader in Warsaw said. The Polish currency eased even as regional peers held stable a day after the U.S. Federal Reserve reiterated its dovish stance, providing some relief for emerging markets. The U.S. Federal Reserve reiterated its accommodative policies, which led to a weaker dollar that helped lift CEE currencies in the evening on Wednesday. They gave up most of those gains Thursday morning. The Czech crown was trading flat at 26.152 per euro. The Polish zloty slid 0.37%, underperforming its peers and trading at 4.624 versus the common currency. The Hungarian forint was trading at 367.74 versus the common currency, hovering near all-time lows. "The forint strengthened as far as 366 in the morning but then the mood turned around, today could be volatile," a Budapest-based FX trader said. "U.S. bond yields ticked down only a bit yesterday and this morning European yields are higher. Bond markets have not calmed down, which could keep emerging markets under pressure." Rising U.S. Treasury yields fuelled by inflation fears have affected CEE markets, driving yields higher since the start of February. "Bond yields in Hungary are ticking up this morning, tracking core markets, but not rising as much as 10-year U.S. Treasuries," a Budapest-based fixed income trader said. Hungary also sold government bonds worth 78 billion forints at an auction, with average yields rising on most tenures from last week's auction. The five-year yield rose to 1.87% from 1.81% last week, while the 10-year yield rose to 2.75% from 2.62% at last week's auction. Stock markets in central Europe firmed with Prague's equities adding 0.78% and hitting a 13-month high. Budapest was up 1.18%, while Warsaw strengthened 0.4%. CEE SNAPSHO AT MARKETS T 1138 CET CURRENC IES Latest Previous Daily Change bid close change in 2021 EURCZK= Czech % EURHUF= Hungary 0 EURPLN= Polish EURRON= Romanian EURHRK= Croatian % EURRSD= Serbian 0 % % Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2021 .PX Prague 1090.63 1082.140 +0.78 +6.18 0 % % .BUX Budapest 44015.7 43504.47 +1.18 +4.53 9 % % .WIG20 Warsaw 1946.76 1939.01 +0.40 -1.88% % .BETI Bucharest 10839.7 10810.53 +0.27 +10.5 9 % 5% .SBITOP Ljubljana <.SBITOP 993.22 991.97 +0.13 +10.2 > % 5% .CRBEX Zagreb 1861.40 1863.51 -0.11% +7.02 % .BELEX1 Belgrade <.BELEX1 760.02 758.92 +0.14 +1.52 5 5> % % .SOFIX Sofia 494.98 493.84 +0.23 +10.6 % 0% Yield Yield Spread Daily (bid) change vs change Bund in Czech spread Republic CZ2YT=R 2-year ps CZ5YT=R 5-year ps CZ10YT= 10-year ps Poland PL2YT=R 2-year ps PL5YT=R 5-year ps PL10YT= 10-year ps FORWARD 3x6 6x9 9x12 3M interb ank Czech Rep 0.42 0.62 0.91 0.36 Hungary 0.97 1.15 1.32 0.77 Poland 0.25 0.26 0.33 0.21 Note: FRA are for ask quotes prices ********************************************** **************** (Additional reporting by Jason Hovet in Prague and Alan Charlish in Warsaw; Editing by Ramakrishnan M.)