European markets track higher as Fed clarifies timeline for rate hikes

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European markets track higher as Fed clarifies timeline for rate hikes

BUCHAREST, Sept 23 Reuters - Most central European stocks and currencies tracked higher on Thursday after the U.S. Federal Reserve clarified its timeline for rate hikes as concerns over Chinese property developer Evergrande eased. By 1030 GMT, Prague's blue-chip index led gains with a 1.0% rise, followed by Budapest and Bucharest to gain 0.9% and 0.8%, respectively. China injected fresh cash to its financial system ahead of a crucial Evergrande bond coupon deadline, easing some of the concerns over a possible default that had hit markets earlier this week. The Hungarian currency eased 0.1% against the euro to 355.5000 on the day, extending losses after Tuesday's lower-than-expected rate hike. The euro was up against the Czech crown 0.2%. Sharp stock gains and a halt to dollar firming could play in the crown's favour, CSOB said in a note. Similar to a calmer mood in Asian market after fears eased over the collapse of Evergrande. In June this year, Hungarian and Czech central banks were the first to raise interest rates in the European Union. While Hungary has lower and tighter hikes, Czech central bankers have shown support for cutting down monetary policy measures with a bigger than usual 50% basis-point rate increase next week. In this region, the Romanian zloty was up 0.5% against the euro and the Polish leu 0.1%.