April 24, 2017 / 8:34 AM / 4 months ago

CEE MARKETS-Stocks, FX gain in relief rally after French vote

    * Warsaw leads stock rebound on French vote, up 1.3 pct
    * Zloty, forint, crown up 0.2 to 0.4 pct vs euro
    * Leu misses rally before; public wage bill expected
    * Regional government bonds are mixed

    By Sandor Peto
    BUDAPEST, April 24 (Reuters) - Central European stocks and
currencies rose on Monday after centrist Emmanuel Macron won the
first round of France's presidential elections, taking a big
step towards becoming president.
    Fears of a strong performance of the anti-EU far-right and
radical left candidates had weighed on equities and currencies
in the European Union's emerging markets.
    Warsaw led a rebound of stocks, with its blue-chip index
 rising 1.3 percent by 0740 GMT. The zloty
gained 0.4 percent, the Czech crown 0.3 percent and
the forint 0.2 percent. Volatility gauges for the
region fell sharply.
    The Polish and Hungarian currencies bounced back from
multi-week lows. One Budapest-based dealer said there was
unusually brisk trade in the forint's dollar cross
after a jump by the euro to a five-month high against the
dollar.
    "The French election outcome, with all the earlier fears,
matched expectations. One risk is removed now," one dealer said.
    The leu missed the rally, trading flat at 4.5355
to the euro. The government is expected to submit a bill to
parliament on Monday setting out further increases in public
sector wages. The Romanian net average wage jumped 14.7 percent
in annual terms in February.
    Romania auctions two-year government bonds on Monday.
    The Czech crown reversed an earlier slide on Monday. It
failed to make the gains many investors had bet on before the
central bank removed a cap on the crown's value at 27 to the
euro on April 6.
    The currency crown could remain volatile for months, Czech
central bank Governor Jiri Rusnok said on Friday. The bank will
let the market find a rate for the crown it considers proper, he
said.
    In Hungary, anti-government protests have caused jitters in
markets in the past three weeks, after the government passed
legislation targeting a university founded by billionaire George
Soros
    The Hungarian central bank is expected to retain its loose
monetary policy at its meeting on Tuesday.
    Hungarian government bond yields dropped 2 to 3 basis points
in early trade, in contrast with a slight rise in yields in
Poland tracking German Bunds.
    "The yield drop may have been triggered by the forint's
gains," one Budapest-based trader said.
              CEE        SNAPS   AT  0940          
              MARKETS    HOT    CET           
                         CURRENCIES                
                         Lates  Previ  Daily  Chang
                         t      ous           e
                         bid    close  chang  in
                                       e      2017
 Czech crown             26.82  26.90   +0.3  0.67%
                            70     90     1%  
 Hungary                 312.3  313.0   +0.2  -1.12
 forint                    100    100     2%      %
 Polish                  4.246  4.264   +0.4  3.71%
 zloty                       5      3     2%  
 Romanian                4.535  4.536   +0.0  -0.01
 leu                         5      2     2%      %
 Croatian                7.457  7.455  -0.02  1.32%
 kuna                        0      5      %  
 Serbian                 123.2  123.3   +0.0  0.05%
 dinar                     900    500     5%  
 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                  986.4  977.8   +0.8   +7.0
                             8      7     8%     4%
 Budapest                33133  32969   +0.5   +3.5
                           .45    .44     0%     3%
 Warsaw                  2294.  2264.   +1.3   +17.
                            26     07     3%    78%
 Bucharest               8281.  8232.   +0.5   +16.
                            53     84     9%    89%
 Ljubljana               774.9  773.4   +0.1   +7.9
                             2      4     9%     9%
 Zagreb                  1948.  1949.  -0.03  -2.32
                            60     21      %      %
 Belgrade     <.BELEX15   0.00  733.9   +0.0  -100.
              >                     6     0%    00%
 Sofia                   659.2  657.9   +0.1   +12.
                             1      7     9%    41%
                         BONDS                     
                         Yield  Yield  Sprea  Daily
                                       d      
                         (bid)  chang  vs     chang
                                e      Bund   e in
 Czech                                        sprea
 Republic                                     d
   2-year     <CZ2YT=RR  0.023  0.108   +072   +4bp
              >                          bps      s
   5-year     <CZ5YT=RR   0.27  0.052   +059  -6bps
              >                          bps  
   10-year    <CZ10YT=R  1.033  0.024   +069  -7bps
              R>                         bps  
 Poland                                            
   2-year     <PL2YT=RR  2.001  0.029   +270  -4bps
              >                          bps  
   5-year     <PL5YT=RR  2.876  0.016   +320  -10bp
              >                          bps      s
   10-year    <PL10YT=R  3.438  0.025   +309  -7bps
              R>                         bps  
              FORWARD    RATE   AGREEMENT          
                         3x6    6x9    9x12   3M
                                              inter
                                              bank
 Czech Rep            <   0.31   0.35   0.43      0
              PRIBOR=>                        
 Hungary              <   0.24  0.335   0.43   0.16
              BUBOR=>                         
 Poland               <   1.77    1.8   1.85   1.73
              WIBOR=>                         
 Note: FRA    are for                              
 quotes       ask                             
              prices                          
 **************************************************
 ************
 
 (Additional reporting by Jason Hovet in Prague, editing by
Larry King)
  
 
 

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