Stocks, currencies ease as global mood sours; forint wobbly



By Krisztina Than

BUDAPEST, May 19 (Reuters) - Central European currencies and stocks dropped on Thursday as risk sentiment in global markets soured with investors fretting over the inflation storm, economic growth outlook and the Russia-Ukraine conflict.

The Hungarian forint EURHUF= was on a rollercoaster, weakening again to 385 versus the euro, after it posted gains the day before on comments by Deputy Governor Barnabas Virag that Hungary needed positive real interest rates to wrestle down inflation.

"The forint extended gains but was stopped by an important resistance level ... and could not close the day firmer than 382.50 to the euro," brokerage Equilor said in a note.

"This is the level worth watching in coming days ... if the forint does not manage to firm past this level then it could start weakening again."

At 0727 GMT, the forint was down 0.4% trading at 385 versus the euro, leading losses in the region.

As expected, the Hungarian central bank kept its one-week deposit rate NBHK unchanged at 6.45% at a weekly tender on Thursday. The bank uses the one-week deposit rate to tackle short-term market volatility. Late last month, the bank raised its base rate by 100 basis points to 5.4% HUINT=ECI , as it fights surging inflation, along with its peers across Central Europe.

The Czech crown EURCZK= was 0.1% lower at 24.692 against the euro. The central bank stepped into markets last week to intervene to stop a sharp decline as the country's interest rate outlook faces uncertainty.

Markets expect a hefty rate hike when the Czech bank meets again in June, sitting under the current board composition for the last time before a new governor, who, however, has called for an end to the sharp policy tightening seen over the past year.

Poland and Romania launched debt sales on Wednesday, restarting emerging market sovereign debt issuance on international markets after a month's hiatus.

In Poland, the zloty EURPLN= was 0.1% weaker at 4.646 to the euro.

Stock markets dropped along with global peers, with Budapest .BUX down 2% leading losses.

CEZ CEZP.PR shares pulled back on Thursday, falling over 1%, after rising 8% in the previous session on speculation of possible restructuring at the Czech majority state-owned utility.

The Czech Finance Ministry said on Wednesday a restructuring was one option being analysed for CEZ, dusting off an idea that a previous government shelved in 2018-19.

"Even though no detailed information was given, the fact that such possibility is being considered should support the stock price in the following days," J&T Banka said in a note.

CEE

SNAPSHOT AT

MARKETS

0923 CET

CURRENCI

ES

Latest

Previous Daily

Change

bid

close

change in 2022 EURCZK Czech

EURCZK=

24.6920 24.6600 -0.13% +0.73% =

crown

EURHUF Hungary

EURHUF= 385.0000 383.5000 -0.39% -4.05% =

forint

EURPLN Polish

EURPLN=

4.6460

4.6405 -0.12% -1.18% =

zloty

EURRON Romanian EURRON=

n/a

4.9480

n/a

n/a =

leu

EURHRK Croatian EURHRK=

7.5350

7.5345 -0.01% -0.23% =

kuna

EURRSD Serbian

EURRSD= 117.4100 117.4800 +0.06% +0.14% =

dinar

Note:

calculated from

1800

daily

CET

change

Latest

Previous Daily

Change

close

change in 2022 .PX

Prague

.PX

1331.76 1339.070 -0.55% #VALUE!

0

.BUX

Budapest .BUX

42012.89 42896.59 -2.06% -17.17% .WIG20 Warsaw

.WIG20

1770.86 1801.68 -1.71% -21.88% .BETI Buchares .BETI

11961.23 12093.12 -1.09% -8.42%

t

.SBITO Ljubljan .SBITOP

1130.59 1135.97 -0.47% -9.95% P

a

.CRBEX Zagreb

.CRBEX

2080.30 2080.30 +0.00% +0.05% .BELEX Belgrade <.BELEX15

820.02

820.02 +0.00% -0.09% 15

>

.SOFIX Sofia

.SOFIX

616.05

616.05 +0.00% -3.09%

Yield

Yield

Spread Daily

(bid)

change

vs Bund change

in

Czech

spread

Republic

CZ2YT=

2-year <CZ2YT=RR

5.6730

0.0910 +531bp +10bps RR

>

s CZ5YT=

5-year <CZ5YT=RR

5.2080 -0.1090 +450bp

-9bps RR

>

s CZ10YT

<CZ10YT=R

4.9130

0.0000 +394bp

+4bps =RR

10-year R>

s

Poland

PL2YT=

2-year <PL2YT=RR

6.2620 -0.0270 +590bp

-2bps RR

>

s PL5YT=

5-year <PL5YT=RR

6.8090 -0.0050 +610bp

+2bps RR

>

s PL10YT

<PL10YT=R

6.6060 -0.0390 +563bp

+0bps =RR

10-year R>

s

FORWARD

3x6

6x9

9x12

3M

interba

nk

Czech

CZKFRA <

6.84

6.78

6.46

6.04

Rep

PRIBOR=>

Hungary

HUFFRA <

7.91

8.35

8.34

6.81

BUBOR=>

Poland

PLNFRA <

7.18

7.27

7.24

6.45

WIBOR=>

Note:

are for ask prices

FRA

quotes

************************************************

**************


Additional reporting by Jason Hovet in Prague; Editing by Sherry Jacob-Phillips

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