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CEE MARKETS-Forint, Prague stocks touch fresh peaks in mixed markets

    PRAGUE, May 20 (Reuters) - Hungary's forint hit a fresh
nine-month high against the euro on Thursday, looking for a
third day to firmly break past a technical level with markets
seeing growing chances of a interest-rate hike.
    Other currencies were mixed, drifting off recent highs,
while mainly stock markets tip-toed higher after coming under
pressure in the previous session with global worries over
inflation.    
    Central European equity markets in May have climbed out the
deep holes created by the COVID-19 pandemic, erasing steep
losses seen in the wake of the outbreak in early-2020. 
    Prague rose 0.5% on Thursday to touch its strongest
level since 2011 for a second time this week. 
    Czech utility CEZ also rose half a percent, with
markets focusing on a likely dividend proposal being announced
on Thursday. Foreign asset sales will mean a bigger payout than
usual.
    On currency markets, the forint has led after a
Hungarian central banker flagged a possible rate hike in
June.
    The Hungarian currency rose in early trade to hit a fresh
high before settling down 0.1% on the day at 350.3 per euro,
seeking to close the day on the strong side of the psychological
level of 350.
    "The euro-forint rate was successfully stopped by the 350
level in the past two days, and it has not yet significantly
broken," brokerage Equilor said. "If the forint keeps firming
and breaks this level, the road will be open as far as the
support level at 344."
    Hungary's central bank is widely expected to leave key rates
steady next week ahead of a watershed June meeting when it could
deliver its first base rate hike in nearly a decade to rein in
rising inflation.
    The surprise shift in Hungary put the bank alongside peers
in the Czech Republic, where markets pencil in a rate hike by
August. The crown inched down 0.1% to 25.50 to the
euro, off a 14-month high of 25.385 hit this week.
    Poland's zloty and Romania's leu were
steady.
 
    
                   CEE      SNAPSHO   AT                      
                   MARKETS  T        1152              
                                     CET               
                                                              
                   CURRENC                                    
                   IES                                 
                            Latest   Previou  Daily    Change
                                     s                 
                            bid      close    change   in 2021
 EURCZK  Czech     <EURCZK  25.5000  25.4690   -0.12%   +2.86%
 =       crown     =>                                  
 EURHUF  Hungary   <EURHUF  350.300  349.930   -0.11%   +3.55%
 =       forint    =>             0        0           
 EURPLN  Polish    <EURPLN   4.5180   4.5195   +0.03%   +0.91%
 =       zloty     =>                                  
 EURRON  Romanian  <EURRON   4.9270   4.9275   +0.01%   -1.26%
 =       leu       =>                                  
 EURHRK  Croatian  <EURHRK   7.5110   7.5095   -0.02%   +0.49%
 =       kuna      =>                                  
 EURRSD  Serbian   <EURRSD  117.480  117.580   +0.09%   +0.08%
 =       dinar     =>             0        0           
         Note:     calculated from            1800            
         daily                                CET      
         change STOCKS                                     
                            Latest   Previou  Daily    Change
                                     s                 
                                     close    change   in 2021
 .PX     Prague             1141.40  1135.24   +0.54%   +11.12
                                          00                 %
 .BUX    Budapest           45462.4  45128.5   +0.74%   +7.97%
                                  3        6           
 .WIG20  Warsaw    <.WIG20  2105.92  2115.15   -0.44%   +6.15%
                   >                                   
 .BETI   Buchares           11620.3  11607.7   +0.11%   +18.51
         t                        9        4                 %
 .SBITO  Ljubljan  <.SBITO  1100.92  1086.01   +1.37%   +22.21
 P       a         P>                                        %
 .CRBEX  Zagreb    <.CRBEX  1950.28  1949.50   +0.04%   +12.13
                   >                                         %
 .BELEX  Belgrade  <.BELEX   776.89   764.61   +1.61%   +3.78%
 15                15>                                 
 .SOFIX  Sofia     <.SOFIX   525.34   524.50   +0.16%   +17.39
                   >                                         %
                                                              
                   BONDS                                      
                            Yield    Yield    Spread   Daily
                            (bid)    change   vs Bund  change
                                                       in
         Czech                                         spread
         Republic                                      
 CZ2YT=    2-year  <CZ2YT=   0.6080  -0.0170   +126bp    -2bps
 RR                RR>                              s  
 CZ5YT=    5-year  <CZ5YT=   1.5100  -0.0060   +200bp    -2bps
 RR                RR>                              s  
 CZ10YT            <CZ10YT   1.8140  -0.0130   +191bp    -3bps
 =RR     10-year   =RR>                             s  
         Poland                                               
 PL2YT=    2-year  <PL2YT=   0.1960  -0.0320   +085bp    -3bps
 RR                RR>                              s  
 PL5YT=    5-year  <PL5YT=   1.2360  -0.0370   +173bp    -5bps
 RR                RR>                              s  
 PL10YT            <PL10YT   1.8620  -0.0100   +196bp    -2bps
 =RR     10-year   =RR>                             s  
                                                              
                   FRA                                        
                            3x6      6x9      9x12     3M
                                                       interba
                                                       nk
         Czech     <CZKFRA     0.70     1.01     1.35     0.36
         Rep       ><PRIBO                             
                   R=>                                 
         Hungary   <HUFFRA     1.21     1.45     1.63     0.89
                   ><BUBOR                             
                   =>                                  
         Poland    <PLNFRA     0.35     0.52     0.74     0.21
                   ><WIBOR                             
                   =>                                  
         Note: FRA quotes are for                             
         ask prices                                    
         ********************************************         
         ****************** (Reporting by Jason Hovet in Prague and Anita Komuves in
Budapest; editing by Uttaresh.V)
  
 
 
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