CEE MARKETS 1-Ukraine fears spread to emerging Europe assets
By Sandor Peto
BUDAPEST, Feb 20 (Reuters) - Central European assets fell on
appetite, raising some concern in Hungary about weak demand for
the bonds on offer at an auction.
Wobbles in other emerging economies have weighed on the
region's assets in the past months even though most of its
states are members of the European Union where economies are
Their trade an financial links are much stronger with the EU
than with Ukraine, but mounting unrest in the region's eastern
neighbour prompted preparations in some countries, including
Hungary, for a potential influx of refugees.
Asset falls in Ukraine may spill over into the region as
some of the key investors who are forced to sell Ukrainian bonds
probably also have holdings in Central Europe.
The forint, the region's most vulnerable unit due
to Hungary's high debt and a decline in yields since 2012, hit a
2-year low against the euro in early trade at 314.80.