CEE emerging markets under selling pressure.

Emerging markets in New Europe were very bearish today. Polish WIG 20 closed -2.4%, Czech PX 50 -2.5% and Hungarian BUX -1.2%. During day PX 50 was down even more than 4%. Present P/E valuation is 13.2. But still Czech economy is growing more than Western Europe and also above average in enlarged Europe. There is a risk of strong currency. Czech Koruna is the strongest in region. But heavily weighed holdings (CEZ, Erste Bank, O2) in index PX 50 shouldn't be negatively affected by currency appreciation.

Exposure from Central and Eastern European stock markets offers ETF SPDR S&P Emerging Europe (GUR) which has more that half holdings in Russia and the rest is splitted among Poland, Turkey, Czech Republic and Hungary.