Economy
Markets in Hungary see scary twists and turns
Markets have been in a state of a global panic attack on Friday, marked by fratic attempts by investors to escape from stocks and move funds to safe havens, most of all the Swiss franc. At 2:30 p.m. CET, new US job market data has brought a measure of relief and cooled down the frenzy to a certain extent.
Key details:
9:27 a.m.
Panic not witnessed since the worst days of the crisis is rampant in global markets. US markets have been shook by a massive fall, major stock indices closed more than 4% in the red on Thursday. On Friday morning CET, overseas futures are still in the negative range, buyer pressure prevails in Asia as well. As usual in this kind of environment, money is looking for low-risk assets, the US dollar and the Swiss franc have gained, the latter currently close to its all-time high.
The stock market in Hungary, like everywhere else throughout the region, is facing massive seller pressure shortly after the opening bell. Taking a closer look at individual stocks, a telltale sign of a deepening crisis is that investors are selling indiscriminately - practically anything they are able to. There has been a temporary minor halt to this across-the-board selloff, however a major turnaround, like yesterday, is nowhere to be seen. For OTP and MOL, HUF 4,500 and HUF 18,000 are important technical levels respectively, not that anyone is interested in that at the moment.
Key details:
- Hungary's CDS has not been so high since March 2009
- Bond markets are jumpy, yields on 10-year Hungarian bonds are up above 8%
- A succession of stock market slumps have been witnessed for several days in a row, coupled with ongoing appreciation of the Swiss franc
- Thursday saw stocks tumble in US markets unlike anything witnessed recently
- News of the US debt ceiling agreement has failed to thaw a chilly market sentiment
- Meanwhile debt crises are rampant throughout the Eurozone; Greece is bankrupt, Italian bond yields are spiralling upward
- Investors dread another bout of worldwide recession.
9:27 a.m.
Panic not witnessed since the worst days of the crisis is rampant in global markets. US markets have been shook by a massive fall, major stock indices closed more than 4% in the red on Thursday. On Friday morning CET, overseas futures are still in the negative range, buyer pressure prevails in Asia as well. As usual in this kind of environment, money is looking for low-risk assets, the US dollar and the Swiss franc have gained, the latter currently close to its all-time high.
- Stock markets have been on the decline for several days, coupled with the appreciation of the Swiss franc.
- On Thursday, US stocks witnessed a slump similar to the darkest days of the worldwide crisis, Asian markets followed suit on Friday.
- News of the US debt ceiling agreement has failed to relax tension in markets
- Meanwhile, debt crisis is rampant in the Eurozone as well, Greece is bankrupt, yields on Italian bonds are rising higher and higher.
- Investors dread another global recession.
The stock market in Hungary, like everywhere else throughout the region, is facing massive seller pressure shortly after the opening bell. Taking a closer look at individual stocks, a telltale sign of a deepening crisis is that investors are selling indiscriminately - practically anything they are able to. There has been a temporary minor halt to this across-the-board selloff, however a major turnaround, like yesterday, is nowhere to be seen. For OTP and MOL, HUF 4,500 and HUF 18,000 are important technical levels respectively, not that anyone is interested in that at the moment.
