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CEE MARKETS-Zloty firms ahead of PM news conference amid political standoff
December 21, 2016 / 8:49 AM / 8 months ago

CEE MARKETS-Zloty firms ahead of PM news conference amid political standoff

* Polish leaders to hold news conference at 0900 GMT
    * Zloty firms, Polish stocks touch eight-month high

    By Sandor Peto
    BUDAPEST, Dec 21 (Reuters) - The zloty tested
5-week highs against the euro and Polish stocks touched an
8-month high on Wednesday ahead of a news conference by top
ruling party leaders likely to address the political crisis over
the rule of law in Poland.
    Central Europe's healthy long-term economic growth prospects
have been supporting assets in the region as the end of the year
approaches, but domestic political issues have weighed on
sentiment in Poland, Romania and Bulgaria.
    The Polish parliament lifted a temporary ban on media access
on Tuesday, which has been triggering protests, but the measure
did not defuse the crisis as the opposition said the government
would need to do more for democracy. 
    Ruling party Law and Justice (PiS) leader Jaroslaw Kaczynski
will hold a news conference at 0900 GMT, along with Prime
Minister Beata Szydlo and parliament speakers.
    The zloty firmed 0.1 percent to 4.4045 against 6the euro by
0821 GMT and Polish government bond yields dropped 1-2 basis
points, with the 10-year paper bid trading at 3.43 percent.
    The Warsaw stock exchange's bluechip index touched
an 8-month high in the second session in a row.
    The leu also firmed, but Romanian government bonds
eased a shade.
    Romanian President Klaus Iohannis has invited political
parties for talks on a new government, with the leftist Social
Democrat Party, the winner of elections held on Dec. 11,
expected to propose a prime minister candidate.
    The president signalled earlier that he would not accept PSD
leader Liviu Dragnea as a prime minister candidate because
convicted earlier this year for rigging a 2012 referendum for
which he received a suspended jail sentence. 
    Bulgaria faces early elections next spring as talks to form
a new government under the mandate of a small right-wing party
failed on Tuesday. 
    Bulgarian stocks firmed a quarter of a percent.
    
           CEE      SNAP   AT  0921       
           MARKETS  SHOT  CET         
                    CURRENCIES            
                    Late  Prev  Dail  Chan
                    st    ious  y     ge
                    bid   clos  chan  in
                          e     ge    2016
 Czech     <EURCZK  27.0  27.0   +0.  -0.0
 crown     =>        200   245   02%    8%
 Hungary   <EURHUF  310.  310.   +0.  1.33
 forint    =>       5000  7250   07%     %
 Polish    <EURPLN  4.40  4.40   +0.  -3.3
 zloty     =>         45    77   07%    3%
 Romanian  <EURRON  4.51  4.51   +0.  0.11
 leu       =>         40    67   06%     %
 Croatian  <EURHRK  7.53  7.53   +0.  1.42
 kuna      =>         20    35   02%     %
 Serbian   <EURRSD  123.  123.   +0.  -1.6
 dinar     =>       4700  6100   11%    2%
 Note:     calcula  prev  clos  1800      
 daily     ted      ious  e at  CET   
 change    from                       
                    STOC                  
                    KS                
                    Late  Prev  Dail  Chan
                    st    ious  y     ge
                          clos  chan  in
                          e     ge    2016
 Prague             918.  917.   +0.  -3.9
                      56    48   12%    5%
 Budapest           3178  3171   +0.   +32
                    8.83  3.50   24%  .89%
 Warsaw    <.WIG20  1944  1940   +0.   +4.
           >         .29   .46   20%   58%
 Buchares           7011  7022  -0.1   +0.
 t                   .50   .02    5%   10%
 Ljubljan  <.SBITO  702.  701.   +0.   +0.
 a         P>         99    46   22%   98%
 Zagreb    <.CRBEX  1968  1970  -0.1   +16
           >         .55   .48    0%  .51%
 Sofia     <.SOFIX  574.  573.   +0.   +24
           >          88    46   25%  .73%
                    BOND                  
                    S                 
                    Yiel  Yiel  Spre  Dail
                    d     d     ad    y
                    (bid  chan  vs    chan
                    )     ge    Bund  ge
                                      in
 Czech                                spre
 Republic                             ad
   2-year  <CZ2YT=  -1.0  -0.0  -028  -6bp
           RR>        64    64   bps     s
   5-year  <CZ5YT=  -0.1  0.02   +03   +3b
           RR>        87     6  1bps    ps
           <CZ10YT  0.49  0.00   +02   +3b
 10-year   =RR>        8     9  5bps    ps
 Poland                                   
   2-year  <PL2YT=  1.99  -0.0   +27   +0b
           RR>         7    03  8bps    ps
   5-year  <PL5YT=  2.74  -0.0   +32  -1bp
           RR>         3    16  4bps     s
           <PL10YT  3.44  -0.0   +31   +1b
 10-year   =RR>        1    06  9bps    ps
           FORWARD  RATE  AGREEMENT       
                    3x6   6x9   9x12  3M
                                      inte
                                      rban
                                      k
 Czech     <CZKFRA  0.28  0.24  0.22     0
 Rep       ><PRIBO                    
           R=>                        
 Hungary   <HUFFRA  0.36  0.39  0.47  0.39
           ><BUBOR                    
           =>                         
 Poland    <PLNFRA  1.75  1.77   1.8  1.73
           ><WIBOR                    
           =>                         
 Note:     are for                        
 FRA       ask                        
 quotes    prices                     
 *****************************************
 *********************
 
 (Additional reporting by Jakub Iglewski in Warsaw)

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