By Jason Hovet PRAGUE, Oct 16 (Reuters) - The Polish zloty firmed on Monday and stocks rose as much as 5%, after exit polls indicated Poland's ruling nationalists may have lost a parliamentary majority in Sunday's election, and the opposition had an opening to take power. Poland has repeatedly clashed with the European Union over multiple issues, including rule of law, since Law and Justice (PiS) came to power in 2015, which has held up EU funds to central Europe's biggest economy. The head of the biggest opposition party Civic Coalition (KO) and former European Council president Donald Tusk has vowed to mend Warsaw's relations with Brussels. He has said he would seek to unblock some 110 billion euros of EU funds earmarked for Poland if he heads a new government. "On the assumption that the exit polls are broadly accurate, the election of a liberal/centre-left coalition would imply a significant policy shift for Poland, especially in terms of its relations with the EU," Goldman Sachs said in a note. Bank Millennium analysts said the opposition's return to power would boost chances of EU fund flows, although no significant change would come in fiscal policy, where high spending has lifted budget risks. The zloty cheered the exit polls that showed KO and allies winning 248 of 460 seats. It traded nearly 1% higher at 4.482 to the euro, off a session high of 4.45 and sitting around levels last seen in early September, before a surprise Polish interest rate cut sent the zloty sharply down to nearly 4.70. Polish stocks rallied, with the blue-chip WIG20 up as much as 5% in early trading before settling off the day's highs. Polish market moves gave a boost to others in central Europe, where Czech utility CEZ climbed above 1,000 crowns for the first time since going ex-dividend in June. The Czech crown added 0.15% to 24.675 per euro, settling off a 15-month low, while Hungary's forint was up half a percent at 386.70 to the euro. CEE MARKETS SNAPSHOT AT 0933 CET CURRENCIES Latest bid Previous Daily Change in close change 2023 EURCZK= Czech 24.6750 24.7110 +0.15% -2.10% crown EURHUF= Hungary 386.7000 388.5500 +0.48% +3.29% forint EURPLN= Polish 4.4815 4.5255 +0.98% +4.64% zloty EURRON= Romanian 0.0000 4.9664 #DIV/0! #DIV/0! leu EURRSD= Serbian 117.0600 117.1850 +0.11% +0.21% dinar Note: daily change calculated from 1800 CET Latest Previous Daily Change in close change 2023 .PX Prague 1351.97 1346.330 +0.42% +12.50% 0 .BUX Budapest 56307.21 55929.69 +0.67% +28.57% .WIG20 Warsaw 2027.02 1974.56 +2.66% +13.11% .BETI Bucharest 14229.28 14277.69 -0.34% +22.00% Spread Daily vs Bund change in spread Czech Republic CZ2YT=RR 2-year 4.7780 -0.1120 +163bps -13bps CZ5YT=RR 5-year 4.4110 -0.0680 +171bps -9bps CZ10YT=RR 10-year 4.5520 -0.0280 +178bps -7bps Poland PL2YT=RR 2-year 5.3440 0.0820 +220bps +7bps PL5YT=RR 5-year 5.2950 -0.1330 +260bps -16bps PL10YT=RR 10-year 5.6130 -0.2200 +284bps -26bps FORWARD 3x6 6x9 9x12 3M interbank Czech Rep 6.39 5.43 4.53 7.04 Hungary 10.78 9.43 7.77 12.06 Poland 5.38 5.07 4.82 5.68 Note: FRA quotes are for ask prices ********************************************************** (Reporting by Jason Hovet in Prague; Editing by Varun H K)
Delayed 05:29:10 2024-05-17 pm EDT | 5-day change | 1st Jan Change | ||
4.258 PLN | +0.01% | -0.98% | -1.97% |
May. 09 | Polish Zloty Ticks Higher After Central Bank Holds Rates at 5.75% | MT |
May. 07 | SocGen's Tuesday Outlook for Currencies, Bonds, Macroeconomics, Policy Events | MT |
Stocks mentioned in the article
Price
|
Change
|
5d. change
|
Capi.
| ||
---|---|---|---|---|---|
88,735 PTS | +0.40% | +2.57% | - | ||
88,610 PTS | +0.35% | +2.51% | - | ||
2,575 PTS | +0.47% | +2.06% | - | ||
914 CZK | -0.76% | +1.27% | 21.6B | ||
386.2 HUF | -0.12% | -0.30% | - | ||
24.64 CZK | -0.11% | -0.94% | - | ||
22.69 CZK | 0.00% | -1.76% | - | ||
8.83 PLN | -0.95% | -0.67% | 2.73B | ||
4.258 PLN | +0.01% | -0.98% | - | ||
3.915 PLN | 0.00% | -1.90% | - | ||
1.168 EUR | +0.17% | +0.48% | - | ||
0.9202 EUR | 0.00% | -0.90% | - | ||
0.6763 EUR | +0.04% | -0.46% | - | ||
0.6155 EUR | +0.13% | +0.44% | - | ||
0.011 EUR | +0.22% | -0.90% | - | ||
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- Polish zloty, stocks jump after election flags political shift