By Ambar Warrick
Oct 13 (Reuters) – Russia’s rouble fell on Tuesday as oil prices weakened, while Central European markets were spooked by new curbs in the Czech Republic to curb the spread of the coronavirus.
The rouble RUB= fell about 0.7% to the dollar, as oil prices held around losses of nearly 3% the day before after major suppliers resumed output and the International Energy Agency forecast a 5% decline in global energy demand in 2020. O/R
Russia’s central bank also forecast rising inflation until early 2021, because of the weakness in the rouble. Russian stocks .IMOEX, .IRTS fell.
Coronavirus cases in Russia rose at a record pace on Tuesday.
In Central European markets, the Czech crown EURCZK= sank 0.4% to the euro after the government ordered bars, restaurants and clubs closed from Wednesday and shifted schools to distance learning, to curb the spread of COVID-19.
The Hungarian forint EURHUF= fell 0.3% and the Polish zloty EURPLN= shed nearly 0.5%. Stock markets in the region were also weaker.
South Africa’s rand ZAR= fell 0.4%, after data on Monday showed the country’s manufacturing output sank 10.8% in August. South African stocks .JTOPI fell 0.5%.
“The recovery of production in the manufacturing sector following the collapse caused by the pandemic in the spring is stagnating,” Elisabeth Andreae, FX & EM Analyst at Commerzbank wrote in a note. “The manufacturing sector is nonetheless likely to make a positive contribution to Q3 growth.”
The MSCI’s index of emerging-market stocks .MSCIEF was largely unchanged, holding around its highest level since late January. While most equities in EMEA were down, gains in Chinese stocks capped losses in the benchmark.
Data showed Chinese imports grew at their fastest pace this year in September and exports extended strong gains as an economic recovery in the country continued.
For GRAPHIC on emerging market FX performance in 2020, see http://tmsnrt.rs/2egbfVh
For GRAPHIC on MSCI emerging index performance in 2020, see https://tmsnrt.rs/2OusNdX
For TOP NEWS across emerging markets
For CENTRAL EUROPE market report, see CEE/
For TURKISH market report, see .IS
For RUSSIAN market report, see RU/RUB
(Reporting by Ambar Warrick in Bengaluru)
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