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CEE MARKETS-Zloty jumps on stop-loss deals, helped by strong economy

* Zloty sails through 4.2 vs euro boosted by stop-loss deals

* Recent robust economic figures continue to buoy zloty

* Hungarian bonds retreat, foreigners' holding drops

BUDAPEST/WARSAW, Nov 29 (Reuters) - The zloty jumped to a 5-1/2 month high against the euro on Wednesday, boosted by stop-loss deals at the key 4.2 level, while Central European asset prices were mixed. The zloty, which along with the Czech crown, is the top performing currency in the world this year, has been appreciating for weeks. Poland's recent industrial output, wage and retail sales figures have fueled expectations that robust growth could tip the balance in the central bank and lead it to hike interest rates next year. In early trade, the zloty rallied to 4.186. By 1002 GMT it retreated to 4.199, still up 0.15 percent. "The chart suggest that the way to 4.16 is open," said BZ WBK chief dealer Mateusz Bieniek, adding that fundamentals backed the zloty, political risks were limited, and a dollar firming could hurt it only if it is sudden. "Moreover, over the last 20 years, December has usually been good for the zloty," he said. The index of Warsaw-listed bank stocks set a new 2-and-1/2-year high. Economic growth is strong across the region, but inflation is not a concern everywhere. The Czech central bank has raised its interest rates twice since August to fight inflation. Expectations for further hikes keep the crown near 4-1/2 year highs against the euro. It firmed 0.1 percent to 25.47 on Wednesday and most analysts expect further gains. Czech markets usually ignore politics. Election winner ANO's party leader Andrej Babis said on Tuesday he expected his minority cabinet to take power on Dec. 13. In Romania, concerns over judiciary reform, corruption and tension between the government and the central bank remain in the limelight, on top of worry over rising inflation. The bank has requested a meeting with Prime Minister Mihai Tudose, just days after he criticized the bank for letting the leu weaken to record lows. The currency eased a shade on Wednesday, just like the forint which traded at 311.30. The latter is off seven-month lows touched a week ago when the National Bank of Hungary announced new programs to push long-term interest rates lower. The announcement boosted demand at a Hungarian bond auction last Thursday, also helping the forint. The latest government figures, however, showed that foreign investors did not take part in the rally. Their Hungarian bond holding actually dropped as yields were falling to record lows. Hungarian yields rose 2-5 basis points on Wednesday, steepening the curve. Ten-year papers traded at 2.12 percent, 22 basis points below U.S. Treasuries.

CEE MARKETS SNAPSHOT AT 1102 CET CURRENCIES

Latest Previous Daily Change bid close change in 2017 Czech crown 25.4700 25.4910 +0.08% 6.03% Hungary 311.3000 311.1350 -0.05% -0.80%

forint

Polish zloty 4.1990 4.2051 +0.15% 4.88% Romanian leu 4.6419 4.6408 -0.02% -2.30% Croatian 7.5450 7.5325 -0.17% 0.13%

kuna

Serbian 119.3300 119.6450 +0.26% 3.37%

dinar

Note: daily calculated previous close at 1800 CET change from

STOCKS

Latest Previous Daily Change close change in 2017 Prague 1056.41 1053.85 +0.24% +14.63% Budapest 39020.97 39242.18 -0.56% +21.93% Warsaw 2473.42 2485.71 -0.49% +26.98% Bucharest 7810.27 7802.62 +0.10% +10.24% Ljubljana 779.80 780.54 -0.09% +8.67% Zagreb 1870.06 1865.47 +0.25% -6.26% Belgrade 735.41 739.42 -0.54% +2.51% Sofia 667.58 667.39 +0.03% +13.84%

BONDS

Yield Yield Spread Daily (bid) change vs Bund change in Czech spread

Republic

2-year 0.26 0 +094bps -1bps 5-year 0.904 0.039 +122bps +1bps 10-year 1.642 -0.117 +128bps -14bps

Poland

2-year 1.555 0.006 +224bps -1bps 5-year 2.619 0.081 +293bps +6bps 10-year 3.321 0.002 +296bps -2bps FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M interbank Czech Rep <PR 1.03 1.21 1.35 0

IBOR=>

Hungary <BU 0.08 0.095 0.14 0.03

BOR=>

Poland <WI 1.773 1.83 1.93 1.73

BOR=>

Note: FRA are for ask quotes prices *************************************************************

(Additional reporting by Luiza Ilie in Bucharest; Editing by Elaine Hardcastle)