Ukraine’s opposition set up a clash with the ruling party over a proposed cabinet shakeup, bolstering demands for the ouster of Prime Minister Mykola Azarov after the biggest street protests in almost a decade.
Hungarian assets are “cheap” because the government will probably obtain a financing agreement from the International Monetary Fund and the European Union, London-based Citigroup Inc. strategist Luis Costa said.
Hungary’s central bank cut its main interest rate to a record low and pledged “increased caution” as policy makers looked past a market rout sparked by the U.S. Federal Reserve saying it may phase out stimulus.
Turkey’s central bank will probably have to intervene with an off-schedule rate increase after its Aug. 20 decision to raise the overnight lending rate was unable to contain a market selloff, according to Citigroup Inc.
The cost of insuring Ukrainian debt against default surged to a three-year high after Moody’s Investors Service cut the country’s credit rating deeper into junk last week, citing “very high default risk.”
Hungary’s forint dropped to a nine- month low as falling inflation stoked prospects for interest- rate cuts and lawmakers backed constitutional changes some European Union members say undermine democracy.
The zloty strengthened for the first time this week and the forint snapped a three-day selloff after manufacturing growth in the U.S., China and Poland accelerated faster than forecast, easing concern about the global recovery.