MARKETS CEE-Forint, stocks weaken after Hungary announces exceptional taxes
Band Anita Komuves
BUDAPEST, May 27 (Reuters) – The Hungarian forint edged lower as stocks extended losses on Friday as markets weighed the impact of new windfall taxes worth 800 billion forints ($2.19 billion) on ‘additional profits’ made by banks, energy companies and other businesses.
The taxes aim to help reduce the budget deficit this year and next, the Hungarian government announced on Thursday. About 60% of the deficit adjustment will come from spending cuts while new taxes will make up the rest.
the forint EURHUF= fell 0.06% and traded at 393 per euro on Friday, ending its steep losses of the previous two sessions. The Budapest Stock Index .BUX fell 0.65%, adding to Thursday’s losses when the government’s announcement rattled investors, sending blue-chip stocks down sharply.
“The forint has stabilized but is stuck at a low level,” said an FX in Budapest. “The market was certainly not happy with this package, but it could help if the government really tried to get the deficit under control.”
Yields on long-term government bonds were flat after rising 20 basis points in the previous session, a fixed-income trader said. The yield on the 10-year bond was around 6.98%.
Investors were also watching the central bank’s rate-setting meeting scheduled for next Tuesday, where a Reuters poll of analysts expects the bank to slow the pace of its rate hikes, raising its base rate by 60 basis points. 6.0% basis.
Deputy Governor Barnabas Virag said on Tuesday that the central bank could slow the pace of rate hikes to about half of the 100 basis point steps issued over the past two months.
On Friday, the bank said it would hold four FX swap tenders providing liquidity in euros and two auctions of discounted short-term bills in June, to “enhance the efficiency of monetary transmission”.
Elsewhere, the Polish zloty failed to enjoy the widely expected approval of a judicial reform bill that paves the way for Poland to secure billions in COVID-19 recovery funds from the European Union .
The zloty EURPLN= was down 0.13% and traded at 4.6080 per euro.
The Czech crown EURCZK= and the Romanian leu EURRON= were flat.
CEE MARKETS
INSTANTANEOUS
At 11:22 a.m. CET
CURRENCIES
Last
Previous
Daily
To change
offer
close
change
in 2022
EURCZK=
Czech koruna
EURCZK=
24.7100
24.7100
+0.00%
+0.66%
EURHUF=
Hungarian forint
EURHUF=
393.0000
392.7500
-0.06%
-6.01%
EURPLN=
polish zloty
EURPLN=
4.6080
4.6020
-0.13%
-0.37%
EURRON=
lei in Romanian
EURRON=
4.9433
4.9432
-0.00%
+0.10%
EURHRK=
Croatian kuna
EURHRK=
7.5340
7.5345
+0.01%
-0.22%
EURRSD=
Serbian dinar
EURRSD=
117.4500
117.4900
+0.03%
+0.11%
Note: daily change
calculated from
1800 CET
Last
Previous
Daily
To change
close
change
in 2022
.PX
prague
.PX
1313.96
1310.5800
+0.26%
.BUX
Budapest
.BUX
38978.13
39234.20
-0.65%
-23.15%
.WIG20
Warsaw
.WIG20
1807.98
1827.01
-1.04%
-20.25%
.BETI
Bucharest
.BETI
12398.10
12323.91
+0.60%
-5.08%
.SBITOP
Ljubljana
.SBITOP
1134.50
1131.07
+0.30%
-9.64%
.CRBEX
Zagreb
.CRBEX
2092.51
2088.01
+0.22%
+0.63%
.BELEX15
Belgrade
.BELEX15
818.69
816.56
+0.26%
-0.25%
.SOFIX
Sofia
.SOFIX
613.82
610.42
+0.56%
-3.44%
Yield
Yield
Spread
Daily
(offer)
change
vs. Bunds
to change
Czech Republic
spread
CZ2YT=RR
2 years
CZ2YT=RR
5.4860
-0.0220
+513 basis points
-5bps
CZ5YT=RR
5 years
CZ5YT=RR
4.9270
-0.0890
+424bps
-10bps
CZ10YT=RR
10 years
CZ10YT=RR
4.6520
-0.0080
+366 basis points
-1bps
Poland
PL2YT=RR
2 years
PL2YT=RR
6.4440
0.0380
+609 basis points
+1 basis points
PL5YT=RR
5 years
PL5YT=RR
6.9160
0.0200
+623bps
+1 basis points
PL10YT=RR
10 years
PL10YT=RR
6.7030
0.0380
+571 basis points
+4 base points
FORWARD
3×6
6×9
9×12
3M interbank
Czech Republic
CZKFRAPRIBOUR=
6.84
6.77
6.58
6.14
Hungary
OYSTERBUBOR=
7.91
8.39
8.44
6.85
Poland
PLNFRAWIBOR=
7.66
7.83
7.81
6.53
Note: ENG Quotes
are for asking prices
************************************************** **** ***********
(Additional reporting by Alan Charlish in Warsaw; Editing by Krishna Chandra Eluri)
((komuves.anita@thomsonreuters.com)(+36 70 795 8815))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.