Markets were preoccupied with Fed Chairman Jerome Powell’s speech yesterday, with key macro data such as employment in the US or European retail trade. The data did not go well, and Powell has basically repeated the spells so far, apparently not being alarmed by the higher bond yields. Consequently, it failed to reassure shareholders as well, so the indices came under another rejection.
Consequently, there was a drop of more than one and two percent in the US yesterday, and as the press pointed out, this rise has also reversed this year. The national conference was held in China, elections are being held in Hong Kong, and Asian indices fell by a slight margin. In Europe, the German index fell 0.8 per cent, the French index 0.7 per cent, and the British index 0.2 per cent.
BUX, the forint, is still underperforming today
At home, the BUX is down 0.7 percent, which is slightly above the European average and the Warsaw Index (the latter stands at -0.1 percent). After the OTP Quick Report, it was priced at 0.8, Mol 0.7, Richter 0.6 and Telekom half percent cheaper. However, if we measure in euros, the drop in Hungarian stocks will be much greater, with the forint weakening by 0.6 percent. The Euro actually reached 366.40, two forts higher than yesterday. Our currency was very weak against the euro in early November. The dollar will continue to rally, buoyed by higher bond yields and the shelter function.
Day Three of Hungarian Assets was a poor performance, regardless of the pandemic situation. In Hungary, new lockdowns were announced to mark the first anniversary of the Coronavirus.