KBC Market Research Desk
KBC Bank
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Easter holidays scale down economic activity
Situation in Ukraine attracts attention
Polish and Hungarian markets were closed on Friday due to Easter holidays whereas trading with the Czech koruna took place but in rather reduced volumes. On Thursday, the zloty, the forint as well as the koruna were supported by ratification of an international agreement in Geneva aimed at prevention of conflict escalation in eastern Ukraine. On top of that, the forint got support from another successful government bond auction.
This week, the regional calendar is nearly empty. Next Thursday, fresh Polish retail sales data may attract certain attention but otherwise Ukrainian crisis should predominate. The Geneva agreement signed by the US, Russia, Ukraine and the EU on April 17 should ensure end of violence, disarming of illegal armed groups and pardon for protesters. However, for the moment, the situation is still uptight, illegal armed groups continue their operations and the government, being aware of massive Russian military presence beyond the border, holds back with a forceful response. As the situation in Ukraine may easily deteriorate in coming days, it continues to pose tangible risk for Central European markets.
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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