×

CEE MARKETS-Currencies firm ahead of GDP data, some stocks retreat

* Stock indices at multi-year high before profit-taking

* Strong Q1 GDP data expected, corporate earnings healthy

* Forint, Czech crown touch 5-week highs

* Romanian central bank cuts inflation forecasts

(Recasts with rise of currencies, new quotes) BUDAPEST, May 15 (Reuters) - Central European currencies firmed on Monday on expectations that first-quarter regional economic output data due on Tuesday will show robust growth, though profit-taking caused some retreat in the region's stock markets. The forint, the zloty and the crown firmed 0.3-0.4 percent against the euro by 1339 GMT. The crown, touching 26.455, hit its strongest levels since the Czech central bank last month removed its cap which had kept the currency weaker than 27 for years. "The global mood is quite good, currencies in other emerging markets like South Africa are also strengthening," one Budapest-based trader said. "Tomorrow's GDP figures could even lift regional currencies further, and 308-308.50 is within shooting range for the forint." The Hungarian unit traded around 309, at 5-week highs. Budapest stocks gave up ground due to profit-taking, after reaching a record high in early trade. Bucharest stocks, however, set a new 9-year high after gaining half a percent and Prague equities touched a new 21-month high. The leu, easing a shade, continued to underperform regional peers, even though Romania is expected to release the highest annual economic growth figure in the region early on Tuesday, at 4.4 percent. Hungary is expected to report 3.35 percent annual economic growth for the first quarter on Tuesday, Poland 3.9 percent and the Czech Republic a pick-up to 2.3 percent. Regional central banks have not showed signs that they will start to tighten policies any time soon, despite robust growth in the region and a retreat in inflation last month, following a surge since 2016. Investors have been worried that the leftist Romanian government's drive to boost wages and cut taxes could widen the country's budget deficit and lift inflation. Romania's central bank may slightly delay an expected tightening of monetary policy, Governor Mugur Isarescu said on Monday after it trimmed its inflation forecasts for this year and next.

CEE SNAPS AT 1539 MARKETS HOT CET

CURRENCIES Lates Previ Daily Chang

t ous e bid close chang in e 2017 Czech 26.50 26.58 +0.3 1.91% crown 00 05 0% Hungary 308.8 309.9 +0.3 -0.01 forint 500 650 6% % Polish 4.198 4.217 +0.4 4.89% zloty 5 0 4% Romanian 4.550 4.548 -0.05 -0.34 leu 5 0 % % Croatian 7.431 7.428 -0.03 1.67% kuna 0 5 % Serbian 123.0 123.2 +0.1 0.28% dinar 000 000 6% Note: calculate previ close 1800 daily d from ous at CET

change STOCK S Lates Previ Daily Chang

t ous e

close chang in

e 2017 Prague 1018. 1017. +0.0 +10. 80 96 8% 55% Budapest 34387 34435 -0.14 +7.4 .37 .53 % 5% Warsaw 2371. 2368. +0.1 +21. 98 50 5% 77% Bucharest 8446. 8407. +0.4 +19. 92 67 7% 22% Ljubljana 780.8 782.6 -0.23 +8.8 9 8 % 2% Zagreb 1864. 1885. -1.10 -6.54 44 17 % % Belgrade <.BELEX15 728.8 725.9 +0.4 +1.6 > 3 0 0% 0% Sofia 655.8 654.9 +0.1 +11. 2 7 3% 83%

BONDS Yield Yield Sprea Daily d

(bid) chang vs chang e Bund e in Czech sprea Republic d 2-year <CZ2YT=RR -0.09 0.041 +058 +4bp > 2 bps s 5-year <CZ5YT=RR 0 0.028 +031 +1bp > bps s 10-year <CZ10YT=R 0.819 0 +040 -2bps R> bps

Poland

2-year <PL2YT=RR 1.984 0.002 +266 +0bp > bps s 5-year <PL5YT=RR 2.811 0.023 +312 +1bp > bps s 10-year <PL10YT=R 3.35 0.026 +293 +0bp R> bps s FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

inter bank

Czech Rep < 0.35 0.43 0.53 0

PRIBOR=>

Hungary < 0.2 0.24 0.32 0.16

BUBOR=>

Poland < 1.752 1.779 1.817 1.73

WIBOR=>

Note: FRA are for quotes ask

prices

************************************************

*************

(Additional reporting by Jan Lopatka in Prague; Editing by Raissa Kasolowsky and Ed Osmond)