Today's Major Market Move - Hungarian Stock Market Down 4.7% in Today's Session

Many European equity markets were hit hard today, but the hardest hit of all was the Hungarian Traded Index which plunged through its 2011 low and finished down 4.7%. The other main Hungarian equity index, the Budapest Stock Exchange Index, was down 3.7% for the day.


The Forint has also started weakening again, although the USDHUF is still well off of its highs for the year.


Part of Hungary's problem is that the government is failing to reduce their budget deficit by the amount that was promised. In the first 6 months Hungary has already used up 87% of the target deficit for the full year. The Hungarians don't have the luxury of getting a potential bailout from the EU or the ECB, however they do have the ability to devalue their currency (which for foreign investors, would be exactly what they are worried about).

According to wikipedia their debt to gdp is currently at 80%, which is a level to generate concern but not quite enough to cause the klaxons to be blaring. Yet. On the PIIGS scale of indebtedness, they lie between Spain and Portugal.

(Click on the images for a larger view.
Click here for the current performance of global equity indexes.
Click here for the current chart of the USDHUF cross.)