beyondbrics

Eastern European equities and currencies saw selling today after Spanish consumer prices fell. Fears that deflation in Spain could worsen the country’s debt problems hit the euro, and European sentiment. But the region remains on course for its best week in five months.

“While eastern European markets could cope with the Greek crisis by itself, they were negatively impacted as the crisis began to spread and damaged the whole European outlook,” said
John Lomax, head of emerging equity strategy at HSBC in London.

At 12:00 BST:

Poland’s WIG20 was off 1 per cent at 2,458.51. The zloty was lower vs the euro by 1.4 per cent.

Russia’s RTS index fell 2.3 per cent, the more liquid Micex was down 1.9 per cent.

In Romania, the Bucharest index lost 2.6 per cent.

Hungary’s BSE index shed 1.2 per cent to 6,952.24. The forint lost 1.1 per cent against the euro to 277.22.

Czech markets fell 1.6 per cent.