There was no domestic
stimuli, which affected the market although
the former coalition made another
agreement on a new government. A
pressure of the weak zloty and forint was
more important for the market. Hence the
koruna opened at EUR/CZK 30.25 and it
touched 30.41 in few hours after the
opening. Later on, the atmosphere calmed
down and the EUR/CZK hovered around
30.35 for the rest of the session. The former
coalition parties, the Social Democrats, the
Christian Democrats and the Freedom
Union, came to an accord on a philosophy of
a new government. Former minister of
regional development Jiri Paroubek will lead
the new government. However, we have to
wait for an approval from the leading body of
the Social Democrats. Nevertheless, there
is still actual what we wrote about previous
agreement; the new government hardly will
make any important reforms, it will be more
or less a maintenance government.
Today, the koruna might erase some
previous losses, but a development in
Hungary and Poland will be decisive. No
significant indicator is due today and no
striking progress on political scene is
expected.
(CSOB - Investment research)