WARSAW, April 8 (Reuters) - Central European stock markets recouped some losses on Tuesday after their worst three-day slide in years following the global market turmoil caused by U.S. tariffs, while currencies also steadied after falls.
The European Union faces 25% import tariffs on steel and aluminium and cars and broader tariffs of 20% for almost all other goods under U.S. President Donald Trump's policy to hit countries he says impose high barriers to U.S. imports.
The European Commission said on Monday it had offered a "zero-for-zero" tariff deal to avert a trade war as EU ministers agreed to prioritise negotiations.
The prospect of negotiations between the U.S. and trading partners delivered some calm to world markets on Tuesday although the mood was still fragile.
In central Europe, Prague's main index .PX firmed 3%, and Budapest's .BUX and Bucharest's .BETI were up 2%, while Warsaw's .WIG20 grew 1% on Tuesday morning.
They had slumped 6% to 12% since mid last week, shedding most of this year's gains made on the back of hopes for ending the war in Ukraine. The decline for most bourses was the biggest since Russia's invasion of Ukraine in 2022, and in Prague's case, the biggest three-day fall since the COVID pandemic hit in 2020.
The Warsaw Stock Exchange GPW.WA said on Tuesday it could pause trading again "in the event of unusual volatility resulting in the activation of volatility mechanisms", after resorting to such halt for about an hour on Monday.
On currency markets, by 0826 GMT, the Czech crown EURCZK= traded 0.3% higher against the euro at 25.1950, continuing to pull away from a 2-1/2 month low of 25.300 hit on Friday.
The Czech National Bank $(CNB.AU)$ paused its monetary easing campaign for a second time in late-March and highlighted inflation risks, including trade wars that could lead to a rise in prices in the short-term.
Rates markets, though, have fallen in recent days, signalling expectations of rate cuts, although most analysts attributed the move to a fall in global rates markets.
"CZK rates seem to have mostly detached from the Czech National Bank reaction function and some correction in rates in the coming days should keep EUR/CZK below 25.300," ING said.
In Hungary, the central bank is also on hold on rates, and data on Tuesday showed Hungary's headline inflation easing faster than expected to 4.7% on the year in March.
The Hungarian forint EURHUF=, which has traded at its lowest since February this week, edged 0.1% higher to the euro, trading at 407.70 per euro.
"There was a bit of attention on the CPI but it is still the international mood that moves the forint," a Budapest-based trader said.
In Poland, the zloty EURPLN= traded 0.2% lower at 4.2960, near its weakest level since November hit on Monday.
Last week Polish central bank Governor Adam Glapinski said the bank could ease policy, shifting to a dovish stance.
In Romania, the central bank held its main interest rate at 6.50% as expected on Monday, and the leu EURRON= traded flat at 4.9773 per euro on Tuesday.
CEE MARKETS SNAPSHOT AT 1026 CET | |||||
CURRENCIES | Latest trade | Previous close | Daily change | Change in 2025 | |
Czech crown | EURCZK= | 25.1950 | 25.2750 | +0.32% | +0.06% |
Hungary forint | EURHUF= | 407.7000 | 408.0000 | +0.07% | +0.91% |
Polish zloty | EURPLN= | 4.2960 | 4.2880 | -0.19% | -0.45% |
Romanian leu | EURRON= | 4.9773 | 4.9779 | +0.01% | -0.02% |
Serbian dinar | EURRSD= | 117.0700 | 117.1300 | +0.05% | -0.10% |
Note: daily change calculated from 1800 CET | |||||
STOCKS | Latest | Previous close | Daily change | Change in 2025 | |
Prague | .PX | 1955.78 | 1902.5900 | +2.80% | +11.11% |
Budapest | .BUX | 84363.14 | 82400.87 | +2.38% | +6.35% |
Warsaw | .WIG20 | 2448.01 | 2431.32 | +0.69% | +11.68% |
Bucharest | .BETI | 16846.75 | 16483.03 | +2.21% | +0.75% |
BONDS | Yield (bid) | Yield change | Spread vs Bund | Daily change in spread | |
Czech Rep 2-year | CZ2YT=RR | 3.2790 | 0.0340 | +144bps | +1bps |
Czech Rep 5-year | CZ5YT=RR | 3.6330 | 0.0320 | +151bps | +1bps |
Czech Rep 10-year | CZ10YT=RR | 4.0490 | -0.0250 | +146bps | -2bps |
Poland 2-year | PL2YT=RR | 4.5370 | 0.0060 | +270bps | -2bps |
Poland 5-year | PL5YT=RR | 4.8950 | -0.0400 | +278bps | -6bps |
Poland 10-year | PL10YT=RR | 5.3250 | -0.0370 | +274bps | -3bps |
FORWARD RATE AGREEMENTS | 3x6 | 6x9 | 9x12 | 3M interbank | |
Czech Rep | CZKFRA, PRIBOR= | 3.34 | 3.13 | 2.95 | 3.71 |
Hungary | HUFFRA, BUBOR= | 6.94 | 6.80 | 6.39 | 6.50 |
Poland | PLNFRA, WIBOR= | 4.66 | 4.20 | 3.89 | 5.68 |
Note: FRA quotes are for ask prices |
(Reporting by Karol Badohal in Warsaw, Anita Komuves in Budapest and Jason Hovet in Prague; Editing by Shailesh Kuber)
((karl.badohal@thomsonreuters.com;))
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