CEE MARKETS-Stocks, currencies rebound, shrugging off Italian vote

* Budapest, Warsaw stocks off multi-month lows, currencies firm

* German coalition deal helps, Italian vote less significant

* Slovak markets steady even though government is shaken

BUDAPEST, March 5 (Reuters) - Central European stocks and currencies rebounded on Monday after Germany's Social Democrats voted to join a government coalition, removing a major political risk in the European Union's biggest economy. Uncertainty in Italy after Sunday's inconclusive general election weighed on nerves but had little affect on the euro-dollar cross closely watched in the EU's eastern markets. "Shaky situations in Italian politics are not rare," said Monika Kiss, an analyst of Equilor brokerage in Budapest. "The nightmare scenarios, like no government in Germany or big far-right win in Italy, are out of the way." In Slovakia, government bonds were steady, even though on Sunday the country's president urged changes in the government or early elections following the murder of an investigative journalist that has shaken the nation. Political developments rarely move markets in most of Central Europe, and it remained uncertain if the scandal will lead to the fall of the government. Most currencies in the region strengthened against the euro. The zloty led them, gaining 0.11 percent to 4.1885 by 0985 GMT. The zloty was off Friday's three-week lows at 4.2 to the euro, even though the Polish central bank is expected to leave interest rates at record lows at its meeting on Wednesday and is unlikely to shift towards a hawkish stance. "We expect an unchanged neutral MPC (central bank) stance in Poland with fresh NBP macro projections supporting our base case scenario of stable rates during the whole year of 2018," Raiffeisen said in a note. Budapest's and Warsaw's main stock indexes rebounded from multi-month lows. Budapest led a rise, gaining 0.9 percent. It was driven by an almost 3 percent rise in pharmaceuticals maker Richter. Analysts said technical factors led to a rebound from around 5,500 forints ($21.64), after a decline last week as it cut its sales target for a key product . The forint gained slightly and Hungarian bonds were steady. "The political super Sunday is over, and there has been no fireworks," one Budapest-based currency dealer said, adding that the week will abound in key events to watch, including the European Central Bank's meeting and key U.S. economic data. Hungarian inflation figures due on Thursday are unlikely to change the Hungarian central bank's loose policy stance, a fixed income trader said. Romania's leu eased slightly versus the euro, but is unlikely to break out of its recent range of 4.65-4.67 despite some political noise before the ruling party's congress on Saturday, ING analysts said in a note.



Latest Previous Daily Change bid close change in 2018 Czech <EURCZK= 25.3700 25.3790 +0.04% +0.68% crown > Hungary <EURHUF= 313.6900 313.8000 +0.04% -0.88% forint > Polish <EURPLN= 4.1885 4.1930 +0.11% -0.29% zloty > Romanian <EURRON= 4.6609 4.6595 -0.03% +0.40% leu > Croatian <EURHRK= 7.4350 7.4395 +0.06% -0.06% kuna > Serbian <EURRSD= 117.9900 118.0000 +0.01% +0.43% dinar > Note: calculated from 1800 CET

daily change

Latest Previous Daily Change close change in 2018 Prague 1112.08 1106.020 +0.55% +3.15%


Budapest 37268.94 36939.18 +0.89% -5.35% Warsaw 2324.53 2314.23 +0.45% -5.55% Bucharest 8367.45 8352.22 +0.18% +7.92% Ljubljana <.SBITOP 806.39 810.01 -0.45% +0.00% > Zagreb 1857.63 1850.05 +0.41% +0.80% Belgrade <.BELEX1 746.44 747.85 -0.19% -1.76%


Sofia 683.12 683.12 +0.00% +0.84%


Yield Yield Spread Daily (bid) change vs Bund change


Czech spread


2-year <CZ2YT=R 0.8800 0.0550 +143bps +6bps


5-year <CZ5YT=R 1.2350 -0.0090 +123bps +0bps


10-year <CZ10YT= 1.9140 -0.0100 +128bps +0bps

RR> Poland

2-year <PL2YT=R 1.6530 0.0100 +220bps +2bps


5-year PL5YT=R 2.5450 0.0120 +254bps +2bps


10-year <PL10YT= 3.2990 0.0230 +266bps +3bps




3x6 6x9 9x12 3M

interban k

Czech Rep 0.98 1.09 1.23 0.91



Hungary 0.08 0.11 0.19 0.02 Poland 1.76 1.77 1.84 1.72

Note: FRA are for ask prices quotes



($1 = 254.2100 forints)

(Additional reporting by Radu Marinas in Bucharest, editing by Larry King)