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CEE stocks plunge on global risk aversion following Trump's victory - analyst

CEE stocks plunge on global risk aversion following Trump's victory - analyst Author: Erste Bank. License: All rights reserved.

BELGRADE (Serbia), November 9 (SeeNews) - The victory of Donald Trump in the US presidential elections increased risk-aversion worldwide, causing stocks to plunge in Central and Eastern Europe and increasing safe-haven flows, a Belgrade-based analyst told SeeNews.

The probability of a rate hike in the US declined to below 50% in December, while the chance was above 80% just yesterday, Mladen Dodig, head of Erste Research in Serbia, told SeeNews.

"In this environment, CEE FX and fixed income markets seem to perform relatively well: CEE currencies appreciate against the dollar and only a limited depreciation of against the euro can be seen," Dodig commented.

In terms of equities, the analyst said that there is no doubt that local markets will be affected by the ripples of the global risk-off sentiment. He, however, added that "in case of markets coping with scarce liquidity we would expect smaller and limited effects".

The BELEX15 of the Belgrade stock exchange was posting losses of just 0.10% by 10 a.m. CET. However, by 12.55 p.m. it was up 0.25% to 667.32 points, before returning to a loss of 0.10% at 13.33 p.m.

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