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Central European Weekly
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Trade balance shows a surprisingly high surplus
Mon, Sep 8 2008, 12:22 GMT
by KBC Market Research Desk
Czech Republic
Trade balance shows a surprisingly high surplus
Hungary
Politics, politics, politics
Poland
Is the zloty weakness here to stay?
Slovakia
The economy grew, fuelled by consumption and investments
The week ahead
Inflation figures might indicate that the worst is over in the Czech Rep. and Hungary
Overview
Revival of risk appetite might help to recoup some losses
Last week showed that even relatively favourable fundamental indicators were not able to protect Central Europe from a global selling wave. This had an impact far beyond the stock markets (where the drop was, naturally, the most obvious) as forex markets, and partly also bond markets, also faced losses. As far as fixed-income instruments are concerned, this time the losses hit not only the most vulnerable Hungarian bonds, but also the segment of government Eurobonds, issued by Central European governments in Western Europe. The spread between the yields of Czech, Polish and Hungarian government Eurobonds and the yields of German Bunds was the highest over the last four months.
Central European developments will continue to be at the mercy of global markets for the next few weeks, despite the fact that very interesting inflation data will be released in the region. The tone in CE markets will be set by the global market reaction to the U.S. Treasury plan to bail out Freddie Mac and Fannie Mae. The risk appetite may increase for some more time and this may support Hungarian bonds and Central European currencies. The question is, however, whether all Central European currencies will join the rally, or whether the Czech currency will decouple as low July inflation figures suggest the CNB might continue to ease and this no good news for the Czech currency.
Published on Mon, Sep 8 2008, 12:54 GMT
Archive
- NBH lowers its base rate from 11.50 % to 11.0 %
Published On Mon, Dec 1 2008, 11:47 GMT - Czech inflation beats a quick retreat
Published On Mon, Nov 24 2008, 11:38 GMT - The NBS Cuts Base Rate by 50 bps to 3.25%
Published On Mon, Nov 17 2008, 12:46 GMT - The National Bank of Slovakia will need to react to the ECB 50bps rate cut
Published On Mon, Nov 10 2008, 12:21 GMT - The koruna fights back
Published On Mon, Nov 3 2008, 12:52 GMT
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