BUDAPEST, June 13 (Reuters) - Central European stocks fell and currencies eased on Friday after Israel launched strikes on Iran's nuclear and military sites, causing uncertainty and hitting emerging markets as investors fled to safe-haven assets.
The dollar firmed, global stocks tumbled and oil prices surged after Israel said it targeted nuclear facilities, ballistic missile factories and military commanders and that this was the start of a prolonged operation to prevent Tehran from building an atomic weapon.
Iran launched about 100 drones towards Israeli territory in retaliation.
Stocks in Central Europe fell, with Budapest's index .BUX leading losses as it shed 1.8%. Warsaw .WIG20 lost 0.2% while Bucharest's stocks .BETI were 0.7% lower.
In currencies, the Hungarian forint EURHUF= weakened 0.3% to trade at 402.55 per euro, giving up its gains from earlier this week when it broke out of its tight range and firmed to a more than two-month high.
"The forint eased after the attack, but not significantly because there have been signs that this attack would be happening, and it was somewhat expected," a forex trader in Budapest said.
"The main question is how long it will be and what retailiatory steps Iran takes, so markets here are waiting for development."
The Polish zloty EURPLN= edged down 0.05% to trade at 4.2725 to the euro, continuing to give up gains from the first half of the week when it firmed in the run-up to Wednesday's government confidence vote, which followed nationalist eurosceptic Karol Nawrocki's win at the presidential election earlier this month.
"Today, the złoty is slightly weaker against the euro," Bank Millennium wrote.
"We believe that these trends resulting from a deterioration in risk appetite may continue for some time, given the announcement by the Israeli Prime Minister that actions against Iran may last until the risk of retaliation is reduced."
The Czech crown EURCZK= edged down 0.03% to trade at 24.803 per euro.
CURRENCIES | Latest trade | Previous close | Daily change | |
Czech crown | EURCZK= | 24.8030 | 24.7950 | -0.03% |
Hungary forint | EURHUF= | 402.5500 | 401.3500 | -0.30% |
Polish zloty | EURPLN= | 4.2725 | 4.2705 | -0.05% |
Romanian leu | EURRON= | 5.0322 | 5.0269 | -0.11% |
Serbian dinar | EURRSD= | 117.1000 | 117.2000 | +0.09% |
STOCKS | Latest | Previous close | Daily change | |
Budapest | .BUX | 94231.00 | 95951.81 | -1.79% |
Warsaw | .WIG20 | 2724.79 | 2731.30 | -0.24% |
Bucharest | .BETI | 18387.22 | 18521.83 | -0.73% |
BONDS | Yield (bid) | Yield change | Spread vs Bund | |
Czech Rep 2-year | CZ2YT=RR | 3.5650 | 0.1110 | +174bps |
Czech Rep 5-year | CZ5YT=RR | 3.7630 | 0.0110 | +167bps |
Czech Rep 10-year | CZ10YT=RR | 4.2970 | 0.0460 | +182bps |
Poland 2-year | PL2YT=RR | 4.7080 | 0.1080 | +289bps |
Poland 5-year | PL5YT=RR | 5.1620 | 0.0400 | +307bps |
Poland 10-year | PL10YT=RR | 5.5820 | 0.0320 | +310bps |
FORWARD RATE AGREEMENTS | 3x6 | 6x9 | 9x12 | |
Czech Rep | CZKFRA, PRIBOR= | 3.49 | 3.44 | 3.37 |
Poland | PLNFRA, WIBOR= | 4.85 | 4.47 | 4.20 |
(Reporting by Anita Komuves in Budapest and Alan Charlish in Warsaw; Editing by Rashmi Aich)
((komuves.anita@thomsonreuters.com)(+36 70 795 8815))
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