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CEE MARKETS-Forint falls as Hungary posts smaller current account surplus

* Global trade war fear knocks currencies, stocks lower

* Forint leads FX loss as current account surplus disappoints

* Banks, energy firms lead decline in stocks

* Government bonds retreat slightly, or stay flat

BUDAPEST, March 23 (Reuters) - Central European currencies and stocks fell on Friday as fears of a global trade war drove investors away from the risk of emerging markets. The forint led the decline, dropping 0.3 percent to 313 per euro by 0908 GMT. The zloty and the Czech crown slipped about 0.1 percent. The forint fell after Hungary posted a current account surplus of 197 million euros for the last quarter of 2017. Analysts had expected a surplus of 738 million euros . The surplus, which has been a key support for the forint, narrowed to 3.6 billion euros in 2017, down from 6.87 billion euros the year before. But "local factors are not really on the map right now ... emerging markets are getting a beating anyway," one Budapest-based currency dealer said. The main reason was the prospect of a global trade war, after the Unites States announced tariffs on Chinese and China threatened retaliation. Regional stocks extended Thursday's losses at a somewhat slower pace, led by bank and energy stocks. Warsaw's blue-chip index fell 1.4 percent and Prague shed 1 percent. Budapest, after a heavy beating on Thursday, eased only 0.6 percent. Long-term government bond yields were flat or rose by 1 to 2 basis points. Hungarian yields were steady before Tuesday's central bank meeting, where rate setters are expected to reaffirm they would keep monetary policy loose. Romanian bonds were mixed, after the government rejected all bids at a tender to sell 2019 debt. Analysts expect Romania's central bank to continue to raise interest rates at its meeting on April 6. The leu firmed a shade.

CEE SNAPSHOT AT MARKETS 1008 CET

CURRENCI ES

Latest Previous Daily Change bid close change in 2018 Czech <EURCZK= 25.4350 25.4050 -0.12% +0.42% crown > Hungary <EURHUF= 313.0000 312.2000 -0.26% -0.67% forint > Polish <EURPLN= 4.2224 4.2169 -0.13% -1.09% zloty > Romanian <EURRON= 4.6665 4.6690 +0.05% +0.28% leu > Croatian <EURHRK= 7.4445 7.4435 -0.01% -0.19% kuna > Serbian <EURRSD= 118.4900 118.3200 -0.14% +0.01% dinar > Note: calculated from 1800 CET

daily change

Latest Previous Daily Change close change in 2018 Prague 1107.17 1118.730 -1.03% +2.69%

0

Budapest 37110.94 37350.75 -0.64% -5.76% Warsaw 2241.90 2274.10 -1.42% -8.91% Bucharest 8575.86 8643.85 -0.79% +10.60% Ljubljana <.SBITOP 822.66 828.15 -0.66% +2.02% > Zagreb 1834.90 1841.39 -0.35% -0.43% Belgrade <.BELEX1 756.28 754.73 +0.21% -0.46%

5>

Sofia 668.22 667.67 +0.08% -1.36%

BONDS

Yield Yield Spread Daily (bid) change vs Bund change

in

Czech spread

Republic

2-year <CZ2YT=R 0.8430 -0.0190 +142bps -2bps

R>

5-year <CZ5YT=R 1.2950 -0.0070 +136bps -1bps

R>

10-year <CZ10YT= 1.9440 0.0130 +142bps +2bps

RR> Poland

2-year <PL2YT=R 1.5530 0.0170 +213bps +1bps

R>

5-year <PL5YT=R 2.4360 0.0220 +250bps +2bps

R>

10-year <PL10YT= 3.2500 0.0120 +272bps +2bps

RR>

FORWARD RATE AGREEMEN

T

3x6 6x9 9x12 3M

interban k

Czech Rep 0.97 1.07 1.24 0.90

<PRIBOR=

>

Hungary 0.07 0.10 0.18 0.03 Poland 1.72 1.74 1.76 1.70

Note: FRA are for ask prices quotes

(Reporting by Sandor Peto, editing by Larry King)