KBC Market Research Desk
KBC Bank
CEE currencies continued yesterday in strengthening. The Polish zloty returned to a technical barrier at 4.00 EUR/PLN and recorded the biggest gains. The koruna and the forint, however, fared also well. The CEE market has been supported by interest rate differential (in case of Poland and Hungary), good macroeconomic data and, last but not least, by ECB´s quantitative easing. The positive sentiment is apparent on the stock market as well. The Prague stock index rose to a more than 2-year high, while the Hungarian BUX index reached its highest value since July 2011. Market sentiment has remained positive even after far-right party Jobbik´s penetration of the parliament due to a by-election. Although Fidesz has still had comfortable majority in the National Assembly, Jobbik’s first parliamentary seat signals falling popularity of the cabinet.
Regarding today’s trading, the regional calendar is empty. Tomorrow’s meeting of the Polish national bank will hardly bring any surprise as the NBP consistently insist on interest rates stability. Eugeniusz Gatnar, a member of the Polish central bank’s Board, said yesterday that the strong zloty was no reason for concern, since the gains of the zloty had resulted from European Central Bank’s quantitative easing.
This non-exhaustive information is based on short-term forecasts for expected developments on the financial markets. KBC Bank cannot guarantee that these forecasts will materialize and cannot be held liable in any way for direct or consequential loss arising from any use of this document or its content. The document is not intended as personalized investment advice and does not constitute a recommendation to buy, sell or hold investments described herein. Although information has been obtained from and is based upon sources KBC believes to be reliable, KBC does not guarantee the accuracy of this information, which may be incomplete or condensed. All opinions and estimates constitute a KBC judgment as of the data of the report and are subject to change without notice.
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