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CEE MARKETS-FX, stocks hit by global sell-off

    WARSAW, Sept 24 (Reuters) - Central European currencies were
mostly softer on Thursday, taking a hit from a global sell-off
in risk assets fuelled by fears that rising numbers of
coronavirus cases are slowing the global economic recovery.
    Europe has seen a surge in infections recently, with Poland
reporting a new record daily number of cases on Thursday. In the
Czech Republic, the surge in cases has been growing at the
second-fastest rate in Europe when adjusted for population,
behind only Spain.  
    "The epicentre of negative effects of the second wave of the
coronavirus is in Europe. CEE currencies must compensate for
expected reduced demand from Europe given the worsening business
sentiment there," said Piotr Bartkiewicz, an economist at Pekao
SA.
    At 0905 GMT the Polish zloty was 0.38% softer
against the euro at 4.5275, the Czech crown was 0.26%
weaker at 27.01. 
    The crown did not get any strong impulse from the Czech
National Bank (CNB) on Wednesday after rate setters left the key
rate unchanged at 0.25% as expected.
    The Romanian leu was little changed at 4.872. The
Hungarian forint was 0.03% weaker at 365.40, after
having firmed earlier in the session.
    "The forint could have stopped for a breather after falling
more than its regional peers in the past few days," a
Budapest-based trader said.
    "Also, the market is thinking that the central bank could
raise the interest rate on its one-week deposit tender to
protect the forint. If that does not happen, the forint could
weaken back to levels of 366 and above."
    The central bank holds its weekly one-week deposit tender
later today. The rate will be announced at 0950 GMT.
    Stocks fell, taking their cue from global markets that have
been rattled by rising infection rates and fading hopes of fresh
stimulus for the U.S. economy.
    The main indices in Prague, Budapest and Warsaw
 fell 0.3%-1.3%.
    Czech 10-year bond yields fell 2 basis points to
0.863%, while Polish 10-year yields fell almost 3
basis points to 1.335%.
    "...in the case of 10-year papers it will not be easy to
break the 1.30% level, despite positive sentiment in the global
debt market," PKO BP analysts in Warsaw said in a note.
    "Therefore, it seems more probable that the yields will
return to 1.40% on the longer end of the curve."
    
    
    
                    CEE       SNAPSHO   AT                      
                    MARKETS   T        1105 CET           
                              CURRENC                           
                              IES                         
                              Latest   Previous  Daily    Change
                              bid      close     change   in
                                                          2020
 EURCZK=  Czech     <EURCZK=  27.0100   26.9400   -0.26%  -5.84%
          crown     >                                     
 EURHUF=  Hungary   <EURHUF=  365.400  365.3000   -0.03%  -9.37%
          forint    >               0                     
 EURPLN=  Polish    <EURPLN=   4.5275    4.5102   -0.38%  -5.99%
          zloty     >                                     
 EURRON=  Romanian  <EURRON=   4.8720    4.8714   -0.01%  -1.72%
          leu       >                                     
 EURHRK=  Croatian  <EURHRK=   7.5510    7.5505   -0.01%  -1.40%
          kuna      >                                     
 EURRSD=  Serbian   <EURRSD=  117.500  117.6000   +0.09%   +0.06
          dinar     >               0                          %
          Note:     calculated from              1800           
          daily                                  CET      
          change Latest   Previous  Daily    Change
                                       close     change   in
                                                          2020
 .PX      Prague               858.80  861.6900   -0.34%  -23.02
                                                               %
 .BUX     Budapest            32103.0  32515.39   -1.27%  -30.34
                                    1                          %
 .WIG20   Warsaw              1667.14   1685.40   -1.08%  -22.46
                                                               %
 .BETI    Buchares            9078.23   9110.46   -0.35%  -9.01%
          t                                               
 .SBITOP  Ljubljan  <.SBITOP   844.36    834.77   +1.15%  -8.80%
          a         >                                     
 .CRBEX   Zagreb              1638.03   1645.58   -0.46%  -18.81
                                                               %
 .BELEX1  Belgrade  <.BELEX1   690.45    688.57   +0.27%  -13.88
 5                  5>                                         %
 .SOFIX   Sofia                424.37    425.11   -0.17%  -25.31
                                                               %
                                                                
                              Yield    Yield     Spread   Daily
                              (bid)    change    vs Bund  change
                                                          in
          Czech                                           spread
          Republic                                        
 CZ2YT=R    2-year  <CZ2YT=R   0.0710   -0.0100   +079bp   +0bps
 R                  R>                                 s  
 CZ5YT=R    5-year  <CZ5YT=R   0.4760   -0.0850   +120bp   -6bps
 R                  R>                                 s  
 CZ10YT=            <CZ10YT=   0.8630   -0.0210   +138bp   +0bps
 RR       10-year   RR>                                s  
          Poland                                                
 PL2YT=R    2-year  <PL2YT=R   0.0500   -0.0490   +076bp   -4bps
 R                  R>                                 s  
 PL5YT=R    5-year  <PL5YT=R   0.6450   -0.0260   +137bp   +0bps
 R                  R>                                 s  
 PL10YT=            <PL10YT=   1.3350   -0.0290   +186bp   -1bps
 RR       10-year   RR>                                s  
                    FORWARD                                     
                              3x6      6x9       9x12     3M
                                                          interb
                                                          ank
          Czech                  0.32      0.33     0.36    0.34
          Rep       <PRIBOR=                              
                    >                                     
          Hungary                0.94      1.01     1.08    0.65
                                                          
          Poland                 0.18      0.17     0.18    0.22
                                                          
          Note:     are for ask                                 
          FRA       prices                                
          quotes                                          
          **********************************************        
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 (Reporting by Alan Charlish in Warsaw, Jason Hovet in Prague,
Anita Komuves in Budapest; Editing by Ramakrishnan M.)
  
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