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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CZECHIA
- This morning, economic data showed that the 'national concept' trade deficit grew to 28.1bn CZK in August (vs. 5.9bn exp) and that industrial output rose by 1.4% in August (vs. 5.1% exp.).
- Even though the political uncertainty may weigh on Czech asset prices in the short term (Czech general on Oct 8/9), the market will continue to attribute more importance to the CNB tightening cycle.
- The Central bank is expected to continue its tightening cycle in the near term, with the debate now only focusing on the size and the frequency of future hikes.
- Czech financial equities (MSCI Index) continue to trend higher, breaking above the 1,200 resistance and currently trading at their highest level since April 2018.
- We previously saw that Czech financials have been partly driven by the rise in ST interest rates in the past 18 months instead of the 'traditional' 2Y10Y yield curve (see chart).
- Next important data to watch is September CPI inflation coming out on Oct 11.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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