By Anita Komuves BUDAPEST, May 27 (Reuters) - The Hungarian forint edged down while stocks extended losses on Friday as markets assessed the impact of new windfall taxes worth 800 billion forints ($2.19 billion) on "extra profits" earned by banks, energy companies and other firms. The taxes aim to help reduce the budget deficit this year and next, the Hungarian government said on Thursday. Some 60% of the deficit adjustment will come from spending cuts while the new taxes will make up the rest. The forint eased 0.06% and was trading at 393 per euro on Friday, halting its steep losses from the previous two sessions. Budapest's stock index eased 0.65%, adding to Thursday's losses when the government's announcement rattled investors, sending bluechip stocks sharply lower. "The forint stabilized but it is stuck at a weak level," an FX in Budapest said. "The market was definitely not happy about this package, but it could help if the government really tries to rein in the deficit." Long-term government bond yields were stable after a 20-basis-point rise in the previous session, a fixed-income trader said. The yield on the 10-year bond was about 6.98%. Investors were also eyeing the rate-setting meeting of the central bank scheduled for next Tuesday where a Reuters poll of analysts expects the bank to slow the pace of its rate hikes, raising its base rate by 60 basis points to 6.0%. Deputy Governor Barnabas Virag said on Tuesday the central bank could slow down the pace of rate rises to about half of the 100 basis point steps delivered in the past two months. On Friday, the bank said it will hold four FX swap tenders providing euro liquidity and two short-term discount bill auctions in June, in order to "strengthen the effectiveness of monetary transmission. " Elsewhere, the Polish zloty was unable to benefit from the widely expected approval of a judicial reform bill that clears the way for Poland to get billions in COVID-19 recovery funds from the European Union. The zloty was 0.13% lower and trading at 4.6080 per euro. The Czech crown and the Romanian leu were flat. CEE SNAPSH AT MARKETS OT 1122 CET CURREN CIES Latest Previo Daily Change us bid close change in 2022 EURCZK Czech 0 0 % % EURHUF Hungary 00 00 EURPLN Polish EURRON Romania % EURHRK Croatia % EURRSD Serbian 00 00 % % Note: calculated from 1800 daily CET change Latest Previo Daily Change us close change in 2022 .PX Prague 1313.9 1310.5 +0.26 6 800 % .BUX Budapes 38978. 39234. -0.65% -23.15 t 13 20 % .WIG20 Warsaw <.WIG20 1807.9 1827.0 -1.04% -20.25 > 8 1 % .BETI Buchare 12398. 12323. +0.60 -5.08% st 10 91 % .SBITO Ljublja <.SBITO 1134.5 1131.0 +0.30 -9.64% P na P> 0 7 % .CRBEX Zagreb <.CRBEX 2092.5 2088.0 +0.22 +0.63 > 1 1 % % .BELEX Belgrad <.BELEX 818.69 816.56 +0.26 -0.25% 15 e 15> % .SOFIX Sofia <.SOFIX 613.82 610.42 +0.56 -3.44% > % Yield Yield Spread Daily (bid) change vs change Bund in Czech spread Republi c CZ2YT= 0 ps CZ5YT= 0 ps CZ10YT 0 ps Poland PL2YT= ps PL5YT= ps PL10YT ps FORWARD 3x6 6x9 9x12 3M interb ank Czech Hungary Poland Note: are for ask FRA prices quotes **************************************** ********************** (Additional reporting by Alan Charlish in Warsaw; Editing by Krishna Chandra Eluri)
Unlock stock picks and a broker-level newsfeed that powers Wall Street.