CEE MARKETS-Stocks rebound, currencies and bonds tread water

* Stocks regains some ground as global risk aversion abates

* Hungarian central bank seen keeping rates at record lows

* Hungarian politics in focus as elections approach

* Upgrade from S&P fails to lift Croatia's kuna

BUDAPEST, March 26 (Reuters) - Central European stocks recovered on Monday as risk aversion eased after fears of a trade war gripped global markets last week. Budapest's main stock index gained 1 percent, after hitting a seven-month low on Friday. Regional currencies and government bonds were little changed as global markets remained shaky and uncertainty over interest rates and politics grew in the region recently. Hungary's central bank is expected to keep interest rates on hold at record lows and reaffirm its loose monetary policy at its meeting on Tuesday. The forint and Hungarian government bonds were treading water early on Monday. Investors were also watching Hungary's political news parliamentary elections on April 8 approach. Prime Minister Viktor Orban's right-wing Fidesz party leads by a wide margin, but a joint opposition candidate won a mayorial by-election in Hodmezovasarhely last month. "Bad signs for Fidesz would be viewed as negative at first sight, as they would be seen as uncertainty," one Budapest-based trader said, but policy comments by the opposition could improve sentiment. Political news rarely affect prices in the European Union's eastern emerging markets. Markets in Slovakia and Slovenia sailed through the resignation of their prime ministers earlier this month unharmed. Croatia's kuna was flat and Zagreb's stock index eased a shade even though Standard & Poor's raised the country's credit raying by one notch to BB+ late on Friday . The move was not a surprise. It reflected fiscal consolidation and some progress in structural reforms, but public-sector debt remains high, "hence there is no material further rating upside", Raiffeisen analyst Gunter Deuber said in a note. In Romania, where inflation has been on a rapid rise due to a surge in wages, an auction of 2 1/2-year bonds is likely to meet demand at Friday's secondary market bid around 3.22 percent, ING analysts said in a note. The Romanian central bank is expected to continue to raise its interest rates at its next meeting, on April 6. The Raiffeisen note said the central bank was likely to frontload rate hikes and "the looming tightening of liquidity might weigh especially on front-end ROMGBs (government bonds)".



Latest Previous Daily Change bid close change in 2018 Czech <EURCZK= 25.4180 25.4350 +0.07% +0.49% crown > Hungary <EURHUF= 312.7000 312.7500 +0.02% -0.57% forint > Polish <EURPLN= 4.2255 4.2250 -0.01% -1.16% zloty > Romanian <EURRON= 4.6625 4.6620 -0.01% +0.37% leu > Croatian <EURHRK= 7.4390 7.4408 +0.02% -0.12% kuna > Serbian <EURRSD= 118.4800 118.3500 -0.11% +0.02% dinar > Note: calculated from 1800 CET

daily change

Latest Previous Daily Change close change in 2018 Prague 1112.73 1107.720 +0.45% +3.21%


Budapest 37305.36 36940.37 +0.99% -5.26% Warsaw 2264.56 2257.22 +0.33% -7.99% Bucharest 8664.80 8660.99 +0.04% +11.75% Ljubljana <.SBITOP 819.19 822.48 -0.40% +1.59% > Zagreb 1826.66 1829.21 -0.14% -0.88% Belgrade <.BELEX1 760.60 757.29 +0.44% +0.11%


Sofia 659.98 661.77 -0.27% -2.58%


Yield Yield Spread Daily (bid) change vs Bund change


Czech spread


2-year <CZ2YT=R 0.8320 0.0130 +142bps +1bps


5-year <CZ5YT=R 1.2850 -0.0170 +135bps -3bps


10-year <CZ10YT= 1.9310 0.0050 +140bps +0bps

RR> Poland

2-year <PL2YT=R 1.5400 -0.0010 +213bps -1bps


5-year <PL5YT=R 2.3980 -0.0010 +246bps -1bps


10-year <PL10YT= 3.2470 0.0060 +271bps +0bps




3x6 6x9 9x12 3M

interban k

Czech Rep 0.96 1.07 1.22 0.90



Hungary 0.08 0.11 0.17 0.03 Poland 1.72 1.74 1.76 1.70

Note: FRA are for ask prices quotes



(Additional reporting by Luiza Ilie in Bucharest, editinb by Larry King)