CEE MARKETS-Zloty at new 2-month peak, forint up ahead of central bank

    PRAGUE, May 26 (Reuters) - Poland's zloty gained half a
percent on Tuesday, leading central European currencies higher,
while stocks also climbed more than 1.6% as the reopening of
European economies continued to cheer investors.
    In Hungary, analysts widely expected the central bank to
hold key interest rates steady at a meeting on Tuesday after a
bond purchase programme helped bring down longer-dated yields.
    Hungary kicks off a week of central bank meetings on
Tuesday, with Poland and Romania to follow.
    The forint was 0.3% firmer at 349.70 to the euro
by 0828 GMT. The zloty was the main gainer, rising to
its strongest level against the euro since March 20, up 0.5% on
the day at 4.479.
    The National Bank of Hungary (NBH) tightened its previously
ultra-dovish policy in April to stabilise the forint and started
a quantitative easing programme in May to stimulate the economy.
    The forint has been in a range of 348-355 per euro in May
and has stayed well off a record low of 369.54 hit on April 1.
    "On balance, the FX market concluded that the central bank
would hike rates if the forint weakened too far," Commerzbank
analysts said.
    "As Hungary is preparing to lift lockdown in stages and the
same is occurring across most of the European Union, we
anticipate no further (quantitative easing) expansion
announcement at this stage. 
    "The (central bank) will likely state that measures taken so
far have been effective and that accommodation will be
maintained at appropriate levels going forward."
    Elsewhere, Romania's leu nudged higher to 4.839 to
the euro and the Czech crown added 0.4% to 27.125.
    Budapest stocks gained 2.2% and Prague and
Warsaw were up around 1.6%.
    A wave of business reopenings has boosted sentiment around
Europe. Czech restaurants opened their indoor dining rooms on
Monday for the first time since mid-March, the latest easing of
restrictions in central Europe this month.
    
                   CEE      SNAPSHO   AT                      
                   MARKETS  T        1028              
                                     CET               
                                                              
                   CURRENC                                    
                   IES                                 
                            Latest   Previou  Daily    Change
                                     s                 
                            bid      close    change   in 2020
 EURCZK  Czech     <EURCZK  27.1250  27.2225   +0.36%   -6.24%
 =       crown     =>                                  
 EURHUF  Hungary   <EURHUF  349.700  350.835   +0.32%   -5.31%
 =       forint    =>             0        0           
 EURPLN  Polish    <EURPLN   4.4794   4.5036   +0.54%   -4.98%
 =       zloty     =>                                  
 EURRON  Romanian  <EURRON   4.8390   4.8417   +0.06%   -1.05%
 =       leu       =>                                  
 EURHRK  Croatian  <EURHRK   7.5835   7.5825   -0.01%   -1.82%
 =       kuna      =>                                  
 EURRSD  Serbian   <EURRSD  117.540  117.610   +0.06%   +0.03%
 =       dinar     =>             0        0           
         Note:     calculated from            1800            
         daily                                CET      
         change                                        
                                                              
                   STOCKS                                     
                            Latest   Previou  Daily    Change
                                     s                 
                                     close    change   in 2020
 .PX     Prague              896.61  882.000   +1.66%  -19.63%
                                           0           
 .BUX    Budapest           35976.5  35210.6   +2.18%  -21.93%
                                  0        0           
 .WIG20  Warsaw    <.WIG20  1671.42  1644.74   +1.62%  -22.26%
                   >                                   
 .BETI   Buchares           8701.88  8688.36   +0.16%  -12.78%
         t                                             
 .SBITO  Ljubljan  <.SBITO   816.46   812.76   +0.46%  -11.82%
 P       a         P>                                  
 .CRBEX  Zagreb    <.CRBEX  1605.26  1576.47   +1.83%  -20.43%
                   >                                   
 .BELEX  Belgrade  <.BELEX   667.85   668.97   -0.17%  -16.69%
 15                15>                                 
 .SOFIX  Sofia     <.SOFIX   450.62   450.22   +0.09%  -20.69%
                   >                                   
                                                              
                   BONDS                                      
                            Yield    Yield    Spread   Daily
                            (bid)    change   vs Bund  change
                                                       in
         Czech                                         spread
         Republic                                      
 CZ2YT=    2-year  <CZ2YT=   0.0960  -0.0430   +075bp    -7bps
 RR                RR>                              s  
 CZ5YT=    5-year  <CZ5YT=   0.3610  -0.0750   +100bp   -12bps
 RR                RR>                              s  
 CZ10YT            <CZ10YT   0.7820   0.0070   +123bp    -4bps
 =RR     10-year   =RR>                             s  
         Poland                                               
 PL2YT=    2-year  <PL2YT=   0.5550   0.0030   +121bp    -2bps
 RR                RR>                              s  
 PL5YT=    5-year  <PL5YT=   0.9920   0.0220   +163bp    -2bps
 RR                RR>                              s  
 PL10YT            <PL10YT   1.4460   0.0250   +189bp    -2bps
 =RR     10-year   =RR>                             s  
                                                              
                   FRA                                        
                            3x6      6x9      9x12     3M
                                                       interba
                                                       nk
         Czech     <CZKFRA     0.25     0.26     0.30     0.34
         Rep       ><PRIBO                             
                   R=>                                 
         Hungary   <HUFFRA     0.83     0.80     0.75     0.97
                   ><BUBOR                             
                   =>                                  
         Poland    <PLNFRA     0.43     0.38     0.39     0.68
                   ><WIBOR                             
                   =>                                  
         Note: FRA quotes are for                             
         ask prices                                    
         ********************************************         
         ******************                            
                                                              
 
 (Reporting by Jason Hovet in Prague, Alan Charlish in Warsaw
and Anita Komuves in Budapest; Editing by Kirsten Donovan)
  
 
 

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