February 14, 2017 / 8:43 AM / 6 months ago

CEE MARKETS-Stocks retreat, Czech, Hungarian GDP grew less than expected

* Hungarian, Czech Q4 GDP growth lower than expected
    * Polish stocks retreat ahead of GDP data due at 0900 GMT
    * Forint shrugs off jump in Hungarian CPI

    By Sandor Peto
    BUDAPEST, Feb 14 (Reuters) - Central European stocks fell in
early trade on Tuesday, with Warsaw retreating from 17-month
highs after Hungary and the Czech Republic reported
lower-than-expected economic growth figures for the last quarter
of 2016.
    Poland is due to publish its own figures at 0900 GMT.
    Hungary's annual growth slowed to 1.6 percent in the
October-December period from 2.2 percent in the prevous quarter
and the Czech growth rate dropped to 1.7 percent from 1.9
percent.
    The Warsaw stock exchange's bluechip index  led
regional equities losses, dropping 0.6 percent by 0812 GMT,
while Prague and Budapest shed 0.2 percent.
    Regional stocks have been helped this year by a rise in
global stock markets due to hopes for economic stimulus in the
United States. Warsaw shares have received additional support
from recent better-than-expected economic data.
    Based on the monthly indicators released in the past months
in the region, weak Hungarian and Czech fourth-quarter economic
figures were not surprising.
    A slower inflow of European Union funds last year curbed
growth and retail sales rose less than expected in late 2016 in
Hungary and the Czech Republic.
    "ING expects a more favourable growth rate (in Hungary) this
year, further driven by a rise in consumption and supported by
growth in investments," said ING analyst Peter Virovacz in a
note.
    Other Hungarian data released on Tuesday showed a rise in
the annual inflation rate to 2.3 percent in January, above an
analysts' forecast of 2.0 percent. 
    That was not a big surprise either as Czech and Polish
figures reported earlier were also higher than expected and
price indices often move in tandem in the region.  
    The forint and other regional currencies changed
little against the euro after the data, including the leu of
Romania, which reported a robust 4.7 percent rise in economic
output for the fourth quarter of last year.
    The zloty eased a shade to 4.311 versus the euro. 
              CEE        SNAPS   AT  0912          
              MARKETS    HOT    CET           
                         CURRENCIES                
                         Lates  Previ  Daily  Chang
                         t      ous           e
                         bid    close  chang  in
                                       e      2017
 Czech crown             27.02  27.02   +0.0  -0.05
                            00     45     2%      %
 Hungary                 308.3  308.4   +0.0  0.15%
 forint                    500    450     3%  
 Polish                  4.311  4.312   +0.0  2.15%
 zloty                       0      1     3%  
 Romanian                4.502  4.500  -0.04  0.73%
 leu                         0      0      %  
 Croatian                7.448  7.449   +0.0  1.43%
 kuna                        5      5     1%  
 Serbian                 123.8  123.9   +0.1  -0.40
 dinar                     400    600     0%      %
 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                  970.6  972.1  -0.15   +5.3
                             9      9      %     3%
 Budapest                33284  33356  -0.21   +4.0
                           .92    .19      %     1%
 Warsaw                  2166.  2179.  -0.62   +11.
                            10     66      %    20%
 Bucharest               7647.  7640.   +0.0   +7.9
                            51     89     9%     4%
 Ljubljana                0.00  760.9   +0.0  -100.
                                    6     0%    00%
 Zagreb                   0.00  2154.   +0.0  -100.
                                   48     0%    00%
 Belgrade     <.BELEX15   0.00  703.5   +0.0  -100.
              >                     2     0%    00%
 Sofia                   604.6  606.1  -0.25   +3.1
                             1      4      %     0%
                         BONDS                     
                         Yield  Yield  Sprea  Daily
                                       d      
                         (bid)  chang  vs     chang
                                e      Bund   e in
 Czech                                        sprea
 Republic                                     d
   2-year     <CZ2YT=RR  -0.57      0   +022   +0bp
              >              4           bps      s
   5-year     <CZ5YT=RR  0.105      0   +053   +0bp
              >                          bps      s
   10-year    <CZ10YT=R  0.512      0   +018   +1bp
              R>                         bps      s
 Poland                                            
   2-year     <PL2YT=RR  2.231  -0.08   +302  -8bps
              >                     5    bps  
   5-year     <PL5YT=RR  3.184  0.002   +361   +0bp
              >                          bps      s
   10-year    <PL10YT=R  3.875  -0.01   +354   +0bp
              R>                    2    bps      s
              FORWARD    RATE   AGREEMENT          
                         3x6    6x9    9x12   3M
                                              inter
                                              bank
 Czech Rep            <   0.26   0.26   0.31      0
              PRIBOR=>                        
 Hungary              <   0.36   0.51   0.65   0.24
              BUBOR=>                         
 Poland               <   1.78   1.82   1.91   1.73
              WIBOR=>                         
 Note: FRA    are for                              
 quotes       ask                             
              prices                          
 **************************************************
 ************
 
 (Reporting by Sandor Peto; Editing by Gareth Jones)

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