On the radar
-
Industrial output grew by 1.7% y/y in Croatia in July.
-
In Serbia, 2Q24 final GDP reading landed at 4.0% with private consumption accelerating by 4.8% year-on-year.
-
In Romania PPI Index arrived at 2.6% y/y
-
In Hungary the 2Q24 GDP was confirmed at 1.5% y/y (-0.2% q/q) driven by private consumption (up by 4.2% y/y).
Economic developments
Although the manufacturing PMI indices remain below the threshold of 50 in all CEE countries, August brought an improvement in market sentiment in Czechia, Poland, and Romania as the PMIs inched toward 46.7, 47.8, and 48.4, respectively. Moreover, the manufacturing PMI in Czechia reached the highest level in two years, which we see as encouraging. Such developments come in contrast with Germany, where the manufacturing PMI dropped further in August to 42.4, reflecting underlying structural weaknesses of the entire sector. The PMI index in Hungary arrived at 47.6 but, due to different methodology, cannot be directly compared with other CEE countries. It is also worth noticing that the improvement of PMIs is in line with better sentiment in the industry sector, according to the Economic Sentiment Indicator surveys. The assessment of the situation has also improved further in the two months of the third quarter, and it is almost as good as it was at the beginning of 2023. The composite Economic Sentiment Indicator has also increased in most of the region.
Market developments
Hungary opened the books on a Samurai bond sale in four parts. The sale follows the announcement that EUR 500 million could still be sold in the autumn of 2024, despite Hungary getting close to the limit of the share of foreign-denominated bonds in total debt, which is set at 30%. In Czechia, the year-to-date budget deficit narrowed to CZK 175.8 billion, the lowest in roughly five years. Romania sold 2027 and 2032 bonds worth RON 495.2 million and RON 450 million, respectively, on Monday. The amount sold was below the targeted one. In Poland, the central bank began its two-day rate-setting meeting, with the interest rate decision due Wednesday. Both the FX market and CEE bond market were stable on Monday.
This document is intended as an additional information source, aimed towards our customers. It is based on the best resources available to the authors at press time. The information and data sources utilised are deemed reliable, however, Erste Bank Sparkassen (CR) and affiliates do not take any responsibility for accuracy nor completeness of the information contained herein. This document is neither an offer nor an invitation to buy or sell any securities.
Recommended Content
Editors’ Picks
![EUR/USD extends losses toward 1.1000, US PMIs awaited](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/money-59004818_XtraSmall.jpg)
EUR/USD extends losses toward 1.1000, US PMIs awaited
EUR/USD resumes the downside toward 1.1000 in the European session on Tuesday. The pair stays on a slippery slope, courtesy of the sustained US Dollar recovery, a cautious mood and uncertainty around the ECB's rate outlook. US ISM Manufacturing PMI awaited.
![GBP/USD drops back toward 1.3100 ahead of US PMI data](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-472155766_XtraSmall.jpg)
GBP/USD drops back toward 1.3100 ahead of US PMI data
GBP/USD has come under renewed selling pressure, eyeing 1.3100 in European trading on Tuesday. A fresh US Dollar uptick and a risk-averse market environment bode ill for the pair, as traders shift their focus to the US ISM manufacturing PMI data for fresh trading impetus.
![Gold seesaws as traders fold their arms ahead of labor market data](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/Gold_Bar_XAU_Precious_Metal_XtraSmall.jpg)
Gold seesaws as traders fold their arms ahead of labor market data
Gold trades around $2,500 as risk recedes, markets are calm, and the US Dollar recovers marginally. Traders await US labor market data this week before determining their next moves.
![Bitcoin and Ethereum whale activity declines 50% while BTC, ETH accumulation continues](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin-39275418_XtraSmall.jpg)
Bitcoin and Ethereum whale activity declines 50% while BTC, ETH accumulation continues
Bitcoin and Ethereum whale activity has slowed down since mid-March 2024 when it hit its peak this year. In March 2024, Bitcoin and Ethereum prices hit a peak of $73,777 and $4,093. The two largest cryptocurrencies have noted a correction in their prices since then.
![Week ahead: US labour data and the BoC rate announcement in focus](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Employment/NFP/working-america-gm173864680-9188844_XtraSmall.jpg)
Week ahead: US labour data and the BoC rate announcement in focus
With US Federal Reserve Chair Jerome Powell’s recent speech at the Jackson Hole Symposium confirming that it is time to begin easing policy as well as underlining the importance of the jobs market, this week’s jobs data may help determine how the Fed approaches its easing cycle.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.