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CEE MARKETS-Budapest stocks at near 1-year high, region sees pressure

    PRAGUE, Feb 17 (Reuters) - Budapest stocks rose to a near
one-year high on Wednesday and were set for a third straight
session of gains, while other bourses retreated on weaker global
cues and currencies eased.
    The Czech crown touched a one-week low and its
regional peers also weakened as the U.S. dollar gained strength.
    Czech bond yields ticked up ahead of a debt auction, the
first since the finance ministry this week proposed a
larger-than-expected upward revision to the 2021 budget gap, to
a record 500 billion crowns ($23 billion).        
    Dealers said the sale should be another test of investor
appetite, which has stayed solid this year. 
    Czech bond yields have risen faster than others in central
Europe amid caution over fiscal plans and expectations the Czech
central bank could become the first in the region to hike
interest rates later this year.
    In Hungary, the forint dropped 0.1% to 359.20 per
euro. The domestic stock index rose 0.3% to its highest
since Feb. 24 at 1020 GMT, led by a more than 1% gain in OTP
 after the bank's shares crossed a key resistance
level.
    Central European markets have been bolstered by
better-than-expected fourth-quarter economic growth in the past
few weeks. 
    The data showed the economies remained resilient despite a
harsher wave of the year-old COVID-19 pandemic, although
uncertainties persist due to lockdown rules. 
    On Wednesday, official data showed that Polish corporate
sector wages rose by 4.8% in January, below expectations.

    "Everything indicates that until the epidemic situation
improves significantly and uncertainty is reduced, the domestic
labor market does not seem to have the potential for a major
rebound," said Kamil Luczkowski, an economist at Bank Pekao. 
    "We expect a clear recovery in the labour market only in the
second half of the year, along with a recovery in the entire
economy."
    
                   CEE      SNAPSHO   AT                      
                   MARKETS  T        1120              
                                     CET               
                                                              
                   CURRENC                                    
                   IES                                 
                            Latest   Previou  Daily    Change
                                     s                 
                            bid      close    change   in 2021
 EURCZK  Czech     <EURCZK  25.8410  25.7975   -0.17%   +1.50%
 =       crown     =>                                  
 EURHUF  Hungary   <EURHUF  359.250  358.825   -0.12%   +0.97%
 =       forint    =>             0        0           
 EURPLN  Polish    <EURPLN   4.5019   4.4969   -0.11%   +1.27%
 =       zloty     =>                                  
 EURRON  Romanian  <EURRON   4.8765   4.8753   -0.02%   -0.24%
 =       leu       =>                                  
 EURHRK  Croatian  <EURHRK   7.5690   7.5735   +0.06%   -0.28%
 =       kuna      =>                                  
 EURRSD  Serbian   <EURRSD  117.460  117.600   +0.12%   +0.09%
 =       dinar     =>             0        0           
         Note:     calcula                    1800            
         daily     ted                        CET      
         change    from STOCKS                                     
                            Latest   Previou  Daily    Change
                                     s                 
                                     close    change   in 2021
 .PX     Prague             1064.05  1070.35   -0.59%   +3.59%
                                          00           
 .BUX    Budapest           45059.2  44941.6   +0.26%   +7.01%
                                  5        5           
 .WIG20  Warsaw    <.WIG20  1993.22  2004.54   -0.56%   +0.47%
                   >                                   
 .BETI   Buchares           10502.5  10535.5   -0.31%   +7.11%
         t                        4        0           
 .SBITO  Ljubljan  <.SBITO   941.40   934.92   +0.69%   +4.50%
 P       a         P>                                  
 .CRBEX  Zagreb    <.CRBEX  1831.52  1833.87   -0.13%   +5.30%
                   >                                   
 .BELEX  Belgrade  <.BELEX   740.03   739.48   +0.07%   -1.15%
 15                15>                                 
 .SOFIX  Sofia     <.SOFIX   499.57   499.09   +0.10%   +11.63
                   >                                         %
                                                              
                   BONDS                                      
                            Yield    Yield    Spread   Daily
                            (bid)    change   vs Bund  change
                                                       in
         Czech                                         spread
         Republic                                      
 CZ2YT=    2-year  <CZ2YT=   0.6970   0.2190   +139bp   +22bps
 RR                RR>                              s  
 CZ5YT=    5-year  <CZ5YT=   1.1470   0.0250   +179bp    +3bps
 RR                RR>                              s  
 CZ10YT            <CZ10YT   1.5890   0.0440   +195bp    +5bps
 =RR     10-year   =RR>                             s  
         Poland                                               
 PL2YT=    2-year  <PL2YT=   0.1040  -0.0660   +079bp    -7bps
 RR                RR>                              s  
 PL5YT=    5-year  <PL5YT=   0.6980  -0.0670   +134bp    -6bps
 RR                RR>                              s  
 PL10YT            <PL10YT   1.3480  -0.0370   +171bp    -3bps
 =RR     10-year   =RR>                             s  
                                                              
                   FRA                                        
                            3x6      6x9      9x12     3M
                                                       interba
                                                       nk
         Czech     <CZKFRA     0.47     0.68     0.91     0.36
         Rep       ><PRIBO                             
                   R=>                                 
         Hungary   <HUFFRA     0.97     1.06     1.19     0.76
                   ><BUBOR                             
                   =>                                  
         Poland    <PLNFRA     0.22     0.29     0.34     0.21
                   ><WIBOR                             
                   =>                                  
         Note: FRA quotes                                     
         are for ask                                   
         prices                                        
         ***********************************                  
         ***************************                   
                                                              
 
 (Reporting by Jason Hovet in Prague, Anita Komuves in Budapest
and Anna Wlodarczak-Semczuk in Warsaw; Editing by Aditya Soni)
  
 
 
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