(Edits headline)
* Hungary stocks jump 3 pct; forint at 1-mth high;
* Hungary 5-yr CDS fall 14 bps, bond spreads snap in 34 bps
* Emerging stocks inch off 3-mth lows; Fed signals awaited
By Sujata Rao
LONDON, April 25 (Reuters) – Hungarian stock markets jumped
3 percent and the forint hit a 1-month high on Wednesday thanks
to signs it was on the way to unblocking talks over an EU and
IMF financing deal.
The spreads on Hungary’s dollar bonds also tightened over 30
basis points and forint bond yields dived by almost half a
percentage point, reflecting a surge since Reuters reported on
Tuesday that the European Commission was not referring the key
point in the two sides’ dispute for further legal action.
Prime Minister Viktor Orban said obstacles to talks on
financial aid had been “practically removed”, signalling the end
to four months of uncertainty over a deal analysts view as vital
for Budapest may be near.
“We may be approaching the stage that formal financing talks
between Hungary and the IMF may begin and that’s what markets
are looking for,” said Manik Narain, emerging markets strategist
at UBS in London.
Continued…
