* Emerging stocks off 2-month lows hit after disappointing
China GDP
* Hungary PM risks more aid delays, stocks near 3-mth low,
forint weaker
* Rand weakens on China slowdown
By Clare Kane
LONDON, April 13 (Reuters) – Hungary’s forint fell and the
cost of insuring its debt hit six-week highs on Friday after
comments from its prime minister appeared to pose another hurdle
to an aid deal, but emerging stocks rose after
weaker-than-expected Chinese GDP made fiscal stimulus more
likely.
Hungary’s Viktor Orban said on Friday that political
conditions for aid talks were “inconceivable and unacceptable”,
risking further delays to a multibillion euro financial backstop
that central Europe’s most indebted country needs to avoid a
financial crisis.
The country remains at loggerheads with Europe over central
bank and other legislation, but its lenders want that dispute
resolved before reaching an aid deal.
“So far the Hungarian government has tried to keep up
positive momentum for the IMF/EU talks, but this kind of talk
will weigh on the forint,” said Carolin Hecht, emerging markets
strategist at Commerzbank in Frankfurt.
“If they don’t get a deal done the euro/HUF above 300 will
be the new normal.”
Continued…
