The market closed down 0.4% after a rating agency cut the sovereign rating of Hungary. Soon after the announcement few sellers appeared and sold off the main Czech blue chips. However, selling was not on heavy volume and price moves were not significant. Only CME closed up 2%, closing the US arbitrage gap; we expect further upside today as stock closed up in New York again. Following the Hungarian rating cut, we now do not expect a massive upside for the regional bourses, as we are approaching year end a worsening macro-situation story may materialise. We may see outflows, even though the Czech Republic has little material relevance to the Hungarian economy and vice versa.