for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

CEE MARKETS-Zloty weaker before inflation data, stocks pull back

    PRAGUE, June 29 (Reuters) - Central European stock markets
eased on Tuesday, dragged down by global nerves that coronavirus
outbreaks in Asia would hurt economic recoveries, while Poland's
zloty pulled back before a key inflation reading this week.
    The zloty was the biggest mover in the region as
central European currencies paused after recent gains amid
investor bets on rising interest rates.
    Markets will gauge a Polish flash inflation reading for June
due on Wednesday to see if Poland's central bank could take a
more hawkish tone following interest rate hikes in Hungary and
the Czech Republic this month.
    "In the coming days we can see a continuation ... towards
the June (highs for the zloty), especially if Wednesday's CPI
reading revives speculation about tightening of monetary
policy," Konrad Bialas, chief economist at DM TMS Brokers, said.
    For now, the zloty was stuck on the weak side of 4.50 to the
euro - trading at 4.516 at 0949 GMT - and a dealer said that
psychological level would provide resistance to further gains
for now.
    Elsewhere, Hungary's forint eased less than 0.1%
and the Czech crown gained less than 0.1% in sideways
trading.
    Central banks in both countries last week became the first
in the European Union to return to interest rate hikes to tackle
inflation rising at the fastest pace in the bloc. The moves come
just over a year after the coronavirus pandemic forced rate
setters into emergency cuts to cushion their economies.
    Poland's inflation hit a rate of 4.6% in May, the second
highest in the EU after Hungary, according to Eurostat. However,
Poland's central bank has stuck to a dovish tone.
    On stock markets, Warsaw blue chips led losses,
falling 0.9%. Budapest and Prague also dropped,
following global sentiment lower.
    Fears over the spread of the highly infectious Delta variant
are denting sentiment at a time markets are on edge after the
U.S. Federal Reserve shocked markets with a hawkish tilt this
month.

                   CEE      SNAPSHO   AT                      
                   MARKETS  T        1149              
                                     CET               
                                                              
                   CURRENC                                    
                   IES                                 
                            Latest   Previou  Daily    Change
                                     s                 
                            bid      close    change   in 2021
 EURCZK  Czech     <EURCZK  25.4300  25.4480   +0.07%   +3.14%
 =       crown     =>                                  
 EURHUF  Hungary   <EURHUF  351.010  350.775   -0.07%   +3.34%
 =       forint    =>             0        0           
 EURPLN  Polish    <EURPLN   4.5160   4.5022   -0.31%   +0.96%
 =       zloty     =>                                  
 EURRON  Romanian  <EURRON   4.9262   4.9272   +0.02%   -1.24%
 =       leu       =>                                  
 EURHRK  Croatian  <EURHRK   7.4930   7.4953   +0.03%   +0.73%
 =       kuna      =>                                  
 EURRSD  Serbian   <EURRSD  117.530  117.605   +0.06%   +0.03%
 =       dinar     =>             0        0           
         Note:     calcula                    1800            
         daily     ted                        CET      
         change    from STOCKS                                     
                            Latest   Previou  Daily    Change
                                     s                 
                                     close    change   in 2021
 .PX     Prague             1160.39  1160.86   -0.04%   +12.97
                                          00                 %
 .BUX    Budapest           48166.4  48301.6   -0.28%   +14.39
                                  6        2                 %
 .WIG20  Warsaw    <.WIG20  2265.67  2285.81   -0.88%   +14.20
                   >                                         %
 .BETI   Buchares           12017.9  11967.2   +0.42%   +22.56
         t                        5        8                 %
 .SBITO  Ljubljan  <.SBITO  1134.30  1135.79   -0.13%   +25.91
 P       a         P>                                        %
 .CRBEX  Zagreb    <.CRBEX  1995.98  2001.56   -0.28%   +14.76
                   >                                         %
 .BELEX  Belgrade  <.BELEX   772.26   776.94   -0.60%   +3.16%
 15                15>                                 
 .SOFIX  Sofia     <.SOFIX   553.90   556.14   -0.40%   +23.77
                   >                                         %
                                                              
                   BONDS                                      
                            Yield    Yield    Spread   Daily
                            (bid)    change   vs Bund  change
                                                       in
         Czech                                         spread
         Republic                                      
 CZ2YT=    2-year  <CZ2YT=   0.4190  -0.0090   +107bp    -1bps
 RR                RR>                              s  
 CZ5YT=    5-year  <CZ5YT=   1.7070  -0.0170   +228bp    -2bps
 RR                RR>                              s  
 CZ10YT            <CZ10YT   1.7750  -0.0340   +196bp    -3bps
 =RR     10-year   =RR>                             s  
         Poland                                               
 PL2YT=    2-year  <PL2YT=   0.4090   0.0000   +106bp    +0bps
 RR                RR>                              s  
 PL5YT=    5-year  <PL5YT=   1.4340  -0.0310   +201bp    -3bps
 RR                RR>                              s  
 PL10YT            <PL10YT   1.8110  -0.0100   +200bp    -1bps
 =RR     10-year   =RR>                             s  
                                                              
                   FRA                                        
                            3x6      6x9      9x12     3M
                                                       interba
                                                       nk
         Czech     <CZKFRA     0.95     1.36     1.63     0.66
         Rep       ><PRIBO                             
                   R=>                                 
         Hungary   <HUFFRA     1.52     1.86     2.02     1.05
                   ><BUBOR                             
                   =>                                  
         Poland    <PLNFRA     0.37     0.63     0.85     0.21
                   ><WIBOR                             
                   =>                                  
         Note: FRA quotes                                     
         are for ask                                   
         prices                                        
         ***********************************                  
         ***************************                   
    

 (Reporting by Jason Hovet in Prague and Alan Charlish in
Warsaw; Editing by Edmund Blair)
  
 
 
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up