CEE MARKETS-Stocks rise, leu unfazed as Romanian govt awaits no-confidence vote

    By Krisztina Than
    BUDAPEST, Aug 31 (Reuters) - Central European currencies
were mixed, while stocks opened higher on Monday tracking Asian
and European shares which rose on Chinese data that fuelled
hopes for economic recovery despite rising coronavirus
infections in the world.
    In Central Europe, the Romanian leu was little
moved and trading at 4.8390 per euro ahead of a vote of no
confidence against the government of Ludovic Orban due later on
Monday.  
    The vote adds to years of political instability that have
kept the leu under pressure at a time when the Romanian economy
is reeling under the negative impacts from the coronavirus
pandemic. Even before the pandemic, Romania was struggling with
a widening budget shortfall.
    The forint was flat, trading around 354 to the euro, holding
onto its gains from Friday and outperforming the Czech crown
 and the Polish zloty which both weakened
around 0.3% on Monday. 
    The Hungarian forint weakened for two weeks and
touched two-month lows mid last week, with weaker-than-expected
Hungarian GDP data and loose monetary policy weighing on the
currency.
    "The forint started a positive correction (on Friday)...and
the exchange rate could firm back towards 350 in the coming
days, while against the dollar, there is an important support at
295 on the chart," brokerage Equilor said in a note.
    On Tuesday, PMI data will be published across the region
which could provide fresh clues about the state of the economic
recovery. Hungary and the Czech Republic will also publish a
breakdown of second-quarter GDP data. 
    Poland's statistics office said on Monday that the country's
gross domestic product fell to 8.2% y/y in the second quarter,
in line with its first estimate of -8.2%. nS8N2E70CZ
    Stocks in the region were higher, with Budapest
leading gains, rising 1%. 
    In Prague, shares of Pegas Nonwovens rose 1.8%,
making them the leading gainer after the artificial textile
maker reported a first-half core profit EBITDA and confirmed its
full-year outlook.
    
            CEE        SNAPSHOT    AT                         
            MARKETS               1004 CET            
                       CURRENCIE                              
                       S                              
                       Latest     Previous  Daily     Change
                       bid        close     change    in 2020
 Czech                   26.2050   26.1210    -0.32%    -2.95%
 crown                                                
 Hungary                354.0000  353.8600    -0.04%    -6.46%
 forint                                               
 Polish                   4.3959    4.3819    -0.32%    -3.17%
 zloty                                                
 Romanian                 4.8390    4.8395    +0.01%    -1.05%
 leu                                                  
 Croatian                 7.5250    7.5285    +0.05%    -1.06%
 kuna                                                 
 Serbian                117.5000  117.6000    +0.09%    +0.06%
 dinar                                                
 Note:      calculated from                 1800 CET          
 daily                                                
 change                                               
                                                              
                       Latest     Previous  Daily     Change
                                  close     change    in 2020
 Prague                   906.98  908.0900    -0.12%   -18.70%
 Budapest               35192.00  34842.51    +1.00%   -23.63%
 Warsaw                  1835.74   1829.79    +0.33%   -14.62%
 Bucharest               8871.74   8850.68    +0.24%   -11.08%
 Ljubljana                840.11    841.49    -0.16%    -9.26%
 Zagreb                  1610.91   1606.72    +0.26%   -20.15%
 Belgrade   <.BELEX15     693.68    693.68    +0.00%   -13.47%
            >                                         
 Sofia                    432.78    432.51    +0.06%   -23.83%
                                                              
                       Yield      Yield     Spread    Daily
                       (bid)      change    vs Bund   change
                                                      in
 Czech                                                spread
 Republic                                             
   2-year   <CZ2YT=RR     0.1530   -0.0430   +081bps     -4bps
            >                                         
   5-year   <CZ5YT=RR     0.6770   -0.0680   +131bps     -8bps
            >                                         
   10-year  <CZ10YT=R     1.0990   -0.0230   +150bps     -4bps
            R>                                        
 Poland                                                       
   2-year   <PL2YT=RR     0.1210   -0.0300   +078bps     -3bps
            >                                         
   5-year   <PL5YT=RR     0.7900   -0.0060   +143bps     -2bps
            >                                         
   10-year  <PL10YT=R     1.4360   -0.0040   +183bps     -2bps
            R>                                        
            FORWARD                                           
                       3x6        6x9       9x12      3M
                                                      interban
                                                      k
 Czech Rep          <       0.37      0.39      0.45      0.34
            PRIBOR=>                                  
 Hungary            <       0.82      0.91      0.99      0.62
            BUBOR=>                                   
 Poland             <       0.25      0.25      0.26      0.23
            WIBOR=>                                   
 Note: FRA  are for ask prices                                
 quotes                                               
 ***************************************************          
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 (Additional reporting by Jason Hovet in Prague; Editing by
Shailesh Kuber)
  
 
 

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