BUCHAREST, Sept 7 (Reuters) - Emerging European stocks tracked broader markets higher on Monday as sentiment recovered after a batch of middling economic data last week lifted hopes that the European Central Bank would maintain an accommodative stance to support inflation. Traders also took stock of the latest U.S. jobs data and prepared for the ECB meeting on Thursday to see if policymakers will introduce yet more stimulus. By 0905 GMT, Prague's bluechip index rose 0.9% on the day, Bucharest gained 0.7%, Warsaw climbed 0.6% and Budapest edged up 0.3%. In Prague, shares of artificial textile maker PFNonwovens rose more than 10% after the company said its majority shareholder would launch a process for the mandatory buyout of minority shareholders. Emerging European currencies were searching for a direction after a rally in the U.S. dollar overshadowed the region last week. The U.S. Labour Department report showed that U.S. employment growth slowed and permanent job losses increased as government funding started running out. Still, the jobless rate fell to 8.4% from 10.2% in July. Investors are not expecting any policy changes at Thursday's ECB meeting, but will be listening closely for anything said about the euro after a blistering rally that has likely unnerved some policymakers. Data showed German industrial output rose far less than expected in July, suggesting Europe's largest economy faces a slow return to production levels that preceded the crisis unleashed by the coronavirus crisis. The Hungarian forint was 0.2% stronger on the day, trading at 360.2400 per euro, but hovering near the five-month lows it touched last week. The currency is at its weakest since climbing back from a record low set in April, during the first wave of the pandemic. "The forint has been underperforming its regional peers in the past month, and this underperformance is also significant if we look at the entire year," CIB Bank said in a note. "This suggest that there are country-specific factors behind the currency's movements as well," the note said, mentioning high inflation, weak second-quarter GDP data, the central bank’s commitment to relatively low interest rates and a jump in the budget deficit. Hungary's recovery from the coronavirus crisis will likely be slower than previously expected, two central bank sources told Reuters, adding that the bank was nearing its limits with tools to stimulate the economy. The Romanian leu was flat against the euro at 4.8545, but near its lowest level since March. Analysts said a failed no-confidence vote against the centrist minority government last week and setting Dec. 6 as the date for a parliamentary election had dispelled some political uncertainties and were driving debt yields lower. Romanian debt managers tender 500 million lei ($121.91 million) worth of Nov. 2024 treasury bonds on Monday. Elsewhere in the region, the Polish zloty was up 0.3% against the euro, while the Czech crown was 0.1% weaker at 26.51. CEE SNAPSHO AT MARKETS T 1117 CET CURRENC IES Latest Previou Daily Change s bid close change in 2020 Czech <EURCZK 26.5100 26.4800 -0.11% -4.07% crown => Hungary <EURHUF 360.150 360.790 +0.18% -8.05% forint => 0 0 Polish <EURPLN 4.4575 4.4682 +0.24% -4.51% zloty => Romanian <EURRON 4.8550 4.8540 -0.02% -1.37% leu => Croatian <EURHRK 7.5390 7.5385 -0.01% -1.24% kuna => Serbian <EURRSD 117.500 117.540 +0.03% +0.06% dinar => 0 0 Note: calculated from 1800 daily CET change Latest Previou Daily Change s close change in 2020 Prague 911.25 902.620 +0.96% -18.32% 0 Budapest 34978.9 34836.8 +0.41% -24.10% 8 2 Warsaw <.WIG20 1771.17 1758.11 +0.74% -17.62% > Buchares 9043.56 8993.80 +0.55% -9.36% t Ljubljan <.SBITO 852.71 838.08 +1.75% -7.90% a P> Zagreb <.CRBEX 1602.14 1608.77 -0.41% -20.59% > Belgrade <.BELEX 688.27 695.36 -1.02% -14.15% 15> Sofia <.SOFIX 435.11 435.11 +0.00% -23.42% > Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year <CZ2YT= 0.1960 0.0220 +089bp +1bps RR> s 5-year <CZ5YT= 0.6880 -0.0420 +138bp -5bps RR> s <CZ10YT 1.1090 -0.0190 +158bp -3bps 10-year =RR> s Poland 2-year <PL2YT= 0.1170 -0.0320 +081bp -4bps RR> s 5-year <PL5YT= 0.7360 -0.0030 +143bp -1bps RR> s <PL10YT 1.4170 0.0100 +188bp +0bps 10-year =RR> s FORWARD 3x6 6x9 9x12 3M interba nk Czech <CZKFRA 0.37 0.38 0.45 0.34 Rep ><PRIBO R=> Hungary <HUFFRA 0.78 0.85 0.90 0.62 ><BUBOR => Poland <PLNFRA 0.21 0.20 0.21 0.23 ><WIBOR => Note: are for ask FRA prices quotes ******************************************** ****************** (Reporting by Luiza Ilie in Bucharest, Anita Komuves in Budapest and Jason Hovet in Prague; Editing by Sherry Jacob-Phillips)
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