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CEE MARKETS-Stocks, fx mostly rebound
April 12, 2017 / 9:29 AM / 8 months ago

CEE MARKETS-Stocks, fx mostly rebound

    * Prague stocks buck CEE rise as Moneta trades ex-div
    * Daimler earnings, dollar retreat cause some improvement in
mood
    * Geopolitical concerns may return
    * Hungarian bonds firm, still helped by Tuesday's CPI data

    By Sandor Peto
    BUDAPEST, April 12 (Reuters) - Central European currencies
and equities mostly firmed on Wednesday as investors took a
breath after selling risky assets in recent weeks due to
geopolitical worries.
    Market participants were split as to whether sentiment
towards emerging markets had actually improved, or the selling
had merely lost some steam.
    A surge in the profit of German auto maker Daimler
, which has a big Mercedes-Benz production plant in
Hungary, improved the mood across European stock markets, said
Monika Kiss, analyst at Equilor Brokerage in Budapest.
    The dollar, whose strength against the euro has also
weighed on Central European currencies in recent weeks, has also
retreated slightly this week.
    "I would say one-off factors are causing today's relief
rather than a sentiment change," Kiss said, adding that
geopolitical risks could continue to cast a shadow on markets in
the region and in the world.
    A Budapest-based fixed income trader saw a slight
improvement in risk sentiment and said worries that France's
far-right may win the upcoming presidential election there
seemed to have eased somewhat.
    "Remaining worries seem to have shifted towards others
(emerging markets)... while Central Europe looks a bit
decoupled," the trader added.  
    The forint and the zloty firmed 0.1
percent against the euro in morning trade, rebounding from a
one-month and a one-week low touched on Tuesday.
    The crown stood slightly weaker against the euro
at 26.681, off morning lows, taking a respite after increased
volatility since the Czech central bank removed its cap at 27,
letting it firm after a rise in inflation in the past months.
    Prague's stock index fell 0.9 percent, while other
regional stock indices mostly rose or were flat.
    The decline was down to one share, Moneta Bank,
which shed more than 8 percent to hit its lowest level since
January as it traded ex-dividend.
    A rise in the stocks of OTP Bank and
pharmaceuticals company Richter helped Budapest's
index gain 0.7 percent.
    Hungarian government bond yields dropped by a few basis
points, with 10-year paper trading at 3.28 percent, down 2 basis
points.
    Hungarian debt got some help, and the forint came under some
pressure, from lower-than-expected 2.7 percent annual inflation
reported on Tuesday.
    The central bank is expected to confirm its loose policy
stance in the minutes of its March rate-setting meeting which it
is due to publish at 1200 GMT.
    Department head Judit Varhegyi told state television M1 on
Wednesday that the bank expected a slowdown in inflation in the
coming months.
    
              CEE        SNAPS   AT  1026          
              MARKETS    HOT    CET           
                         CURRENCIES                
                         Lates  Previ  Daily  Chang
                         t      ous           e
                         bid    close  chang  in
                                       e      2017
 Czech crown             26.68  26.66  -0.07  1.22%
                            10     10      %  
 Hungary                 311.7  312.0   +0.1  -0.93
 forint                    200    650     1%      %
 Polish                  4.248  4.251   +0.0  3.65%
 zloty                       8      5     6%  
 Romanian                4.513  4.515   +0.0  0.48%
 leu                         5      1     4%  
 Croatian                7.431  7.428  -0.03  1.67%
 kuna                        0      5      %  
 Serbian                 123.6  123.7   +0.1  -0.22
 dinar                     200    550     1%      %
 Note: daily  calculate  previ  close  1800        
 change       d from     ous    at     CET    
                         STOCK                     
                         S                    
                         Lates  Previ  Daily  Chang
                         t      ous           e
                                close  chang  in
                                       e      2017
 Prague                  984.5  992.9  -0.85   +6.8
                             0      5      %     2%
 Budapest                32438  32199   +0.7   +1.3
                           .86    .15     4%     6%
 Warsaw                  2223.  2221.   +0.0   +14.
                            11     82     6%    13%
 Bucharest               8211.  8200.   +0.1   +15.
                            40     18     4%    90%
 Ljubljana               781.7  781.1   +0.0   +8.9
                             2      5     7%     4%
 Zagreb                  1918.  1939.  -1.11  -3.85
                            11     72      %      %
 Belgrade     <.BELEX15  736.3  734.0   +0.3   +2.6
              >              9      0     3%     5%
 Sofia                   658.5  656.4   +0.3   +12.
                             9      5     3%    30%
                         BONDS                     
                         Yield  Yield  Sprea  Daily
                                       d      
                         (bid)  chang  vs     chang
                                e      Bund   e in
 Czech                                        sprea
 Republic                                     d
   2-year     <CZ2YT=RR  -0.02  0.022   +083   +4bp
              >              2           bps      s
   5-year     <CZ5YT=RR  0.295  0.037   +081   +4bp
              >                          bps      s
   10-year    <CZ10YT=R  1.021  0.007   +082   +1bp
              R>                         bps      s
 Poland                                            
   2-year     <PL2YT=RR  2.021  0.014   +287   +3bp
              >                          bps      s
   5-year     <PL5YT=RR  2.902  0.012   +342   +2bp
              >                          bps      s
   10-year    <PL10YT=R  3.461  0.019   +326   +2bp
              R>                         bps      s
              FORWARD    RATE   AGREEMENT          
                         3x6    6x9    9x12   3M
                                              inter
                                              bank
 Czech Rep            <    0.3   0.34   0.44      0
              PRIBOR=>                        
 Hungary              <    0.2   0.26   0.33   0.16
              BUBOR=>                         
 Poland               <   1.75   1.78   1.81   1.73
              WIBOR=>                         
 Note: FRA    are for                              
 quotes       ask                             
              prices                          
 **************************************************
 ************
 
 (Additional reporting by Jan Lopatka in Prague; Editing by Mark
Trevelyan)
  
 
 

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