November 14, 2019 / 10:42 AM / 23 days ago

CEE MARKETS-Economic growth slowdown in focus, currencies mixed

    BUCHAREST, Nov 14 (Reuters) - Central European currencies
and stocks were mixed against the euro early on Thursday as
reports showed economic growth across the region was mostly
below expectations in the third quarter.
    The Hungarian forint outperformed, gaining 0.2%
against the euro by 1010 GMT. Hungarian economic growth
accelerated more than expected, to an annual 5.0% in the third
quarter. 
    Growth in central and eastern Europe has been driven by
domestic consumption as labour force shortages have driven wages
higher. 
    While domestic demand has so far offset a slowdown in the
region's euro zone trade partners, Thursday data suggested that
growth was starting to be affected. 
    "The third-quarter GDP data for Central and Eastern Europe
showed that while regional GDP growth slowed to its weakest pace
in over three years, growth remained strong in Hungary and
Poland," Capital Economics said in a note. 
    "But with euro-zone weakness likely to take a heavier toll,
growth is likely to slow more sharply in 2020."
    
    
  * For an interactive version: tmsnrt.rs/2KgEAwH  
    
    Polish growth slowed to 3.9% year-on-year in the third
quarter, below market expectations of 4.1%. 
    In Romania, the economy grew 3.0% in the third quarter,
below a market consensus of 3.8%. Finance Minister Florin Citu
said the budget deficit could exceed 4% of gross domestic
product this year without additional measures.

    The Czech economy expanded at its slowest quarterly pace in
more than three years from July to September as industrial
production lost momentum, preliminary Statistics Office data
showed on Thursday.
    "From the central bank's point of view, we assess today´s
data as neutral or slightly anti-inflationary," Erste Bank said
in a daily note. "We do not change our view of the stability of
interest rates as the most likely scenario for the rest of this
and the next year."
    The Czech crown was up 0.1%. The Polish zloty and
the Romanian leu were flat.
    
            CEE       SNAPSHO   AT                      
            MARKETS   T        1109              
                               CET               
                      CURRENC                           
                      IES                        
                      Latest   Previou  Daily    Change
                               s                 
                      bid      close    change   in 2019
 Czech      <EURCZK=  25.5500  25.5860   +0.14%   +0.61%
 crown      >                                    
 Hungary    <EURHUF=  333.750  334.350   +0.18%   -3.79%
 forint     >               0        0           
 Polish     <EURPLN=   4.2890   4.2898   +0.02%   +0.01%
 zloty      >                                    
 Romanian   <EURRON=   4.7650   4.7649   -0.00%   -2.33%
 leu        >                                    
 Croatian   <EURHRK=   7.4390   7.4383   -0.01%   -0.39%
 kuna       >                                    
 Serbian    <EURRSD=  117.390  117.520   +0.11%   +0.78%
 dinar      >               0        0           
 Note:      calculated from             1800            
 daily                                  CET      
 change                                          
                                                        
                      Latest   Previou  Daily    Change
                               s                 
                               close    change   in 2019
 Prague               1081.47  1084.96   -0.32%   +9.62%
                                    00           
 Budapest             43078.6  43216.3   -0.32%   +10.07
                            0        4                 %
 Warsaw               2243.70  2235.52   +0.37%   -1.45%
 Bucharest            9704.85  9729.44   -0.25%   +31.44
                                                       %
 Ljubljana  <.SBITOP   874.26   878.81   -0.52%   +8.70%
            >                                    
 Zagreb               1966.14  1969.64   -0.18%   +12.43
                                                       %
 Belgrade   <.BELEX1   769.06   769.32   -0.03%   +0.97%
            5>                                   
 Sofia                 557.23   558.73   -0.27%   -6.26%
                      BONDS                             
                      Yield    Yield    Spread   Daily
                      (bid)    change   vs Bund  change
                                                 in
 Czech                                           spread
 Republic                                        
   2-year   <CZ2YT=R   1.4440   0.0630   +208bp    +8bps
            R>                                s  
   5-year   <CZ5YT=R   1.2030  -0.0230   +179bp    -1bps
            R>                                s  
   10-year  <CZ10YT=   1.4890  -0.0540   +181bp    -4bps
            RR>                               s  
 Poland                                                 
   2-year   <PL2YT=R   1.3930   0.0000   +203bp    +1bps
            R>                                s  
   5-year   <PL5YT=R   1.7880  -0.0180   +238bp    -1bps
            R>                                s  
   10-year  <PL10YT=   2.0720  -0.0160   +239bp    +0bps
            RR>                               s  
            FORWARD   RATE     AGREEME                  
                               NT                
                      3x6      6x9      9x12     3M
                                                 interba
                                                 nk
 Czech Rep               2.23     2.21     2.13     2.18
            <PRIBOR=                             
            >                                    
 Hungary                 0.26     0.31     0.35     0.19
                                                 
 Poland                  1.73     1.69     1.67     1.71
                                                 
 Note: FRA  are for ask                                 
 quotes     prices                               
 **********************************************         
 ****************                                
 
    
 (Reporting by Luiza Ilie in Bucharest and Jason Hovet in
Prague; Editing by)
  
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