24/6 Market update

Today, the ECB and SNB have been engaged in some pretty heavy, market-moving activities. The ECB in a 1-year repo offered to lend 442B EUR on a 1-year basis, putting a downward pressure on shorter interest rates. Rumors had it that the SNB was intervening either directly or indirectly in the FX market to curb the strongish CHF after comments last week from governor Roth. The repo contributed to put risk back on the table and we saw stocks and Eastern European assets rising in the aftermath – especially HUF, which is lifted higher due to the big share of Hungarian mortgages that are CHF-financed.