CEE MARKETS-Zloty firms as Poland move seen soothing EU tension

* Under pressure from EU, Poland amends judiciary reform

* Easing tension with Brussels helps Polish assets

* Stocks rise on global trend, government bonds retreat

* Dinar firms again despite repeated cbank rate cut surprise

BUDAPEST, April 13 (Reuters) - Central European currencies and stock indexes mostly firmed on Friday on the back of increasing risk appetite across global markets and a Polish parliament decision that may sooth tension with Brussels. The lower house of parliament, the Sejm, approved legal changes late on Thursday in a bid to address criticism from Brussels and other European Union capitals over a judiciary reform that is seen as hurting the rule of law. "It seems that this time the EU might be (finally) satisfied with the current Sejm amendments to the controversial judicial reform made by the euro-sceptic Polish government," KBC analysts said in a note. "So as a result a risk premium attached to Polish assets could fall, which should be beneficial for the zloty in the mid-term horizon," they said. The EU has threatened to punish Warsaw through a procedure that could go as far as suspending its vote in the bloc.

Poland's move had been expected and that, along with healthy economic fundamentals had helped the zloty off multi-month lows reached on March 21. On Friday, it gained about 0.1 percent against the euro, firming in tandem with Hungary's forint. It traded at 310.91 at 0921 GMT, slightly off a 1-1/2-month high set in early trade. Warsaw's, Prague's and Budapest's main equities indexes rose by 0.5-0.6 percent. Warsaw, a regional underperformer this year, set a 3-week high, while the Czech index hit its highest since Feb. 2. Polish and Hungarian government bond prices gave up part of the week's strong gains. Poland's 10-year benchmark yield traded just above the 3 percent line. Hungary's corresponding yield rose 5 basis points from Thursday's fixing to 2.43 percent. The dinar traded around 118 against the euro, firming 0.1 percent even though the Serbian central bank delivered its second consecutive surprise interest rate cut on Thursday. Analysts have said fighting dinar strength may be an uphill battle as the currency had been buoyed mainly by increased demand for lending, strong exports and investments, rather than portfolio flows, which the bank can influence by changing interest rates.



Latest Previous Daily Change bid close change in 2018 Czech <EURCZK= 25.3180 25.3100 -0.03% +0.88% crown > Hungary <EURHUF= 310.9100 311.2100 +0.10% +0.00% forint > Polish <EURPLN= 4.1790 4.1811 +0.05% -0.06% zloty > Romanian <EURRON= 4.6605 4.6615 +0.02% +0.41% leu > Croatian <EURHRK= 7.4150 7.4215 +0.09% +0.21% kuna > Serbian <EURRSD= 118.0100 118.1600 +0.13% +0.42% dinar > Note: calculated from 1800 CET

daily change

Latest Previous Daily Change close change in 2018 Prague 1138.81 1131.780 +0.62% +5.63%


Budapest 38525.15 38330.37 +0.51% -2.16% Warsaw 2317.77 2306.44 +0.49% -5.83% Bucharest 8904.82 8928.03 -0.26% +14.85% Ljubljana <.SBITOP 836.15 831.65 +0.54% +3.69% > Zagreb 1788.14 1788.64 -0.03% -2.97% Belgrade <.BELEX1 740.89 738.22 +0.36% -2.49%


Sofia 663.13 661.06 +0.31% -2.11%


Yield Yield Spread Daily (bid) change vs Bund change


Czech spread


2-year <CZ2YT=R 0.7520 0.0490 +132bps +4bps


5-year <CZ5YT=R 1.1890 0.0100 +127bps +0bps


10-year <CZ10YT= 1.7800 0.0120 +126bps +0bps

RR> Poland

2-year <PL2YT=R 1.5350 0.0070 +210bps +0bps


5-year <PL5YT=R 2.2730 0.0180 +235bps +1bps


10-year <PL10YT= 3.0220 0.0110 +250bps +0bps




3x6 6x9 9x12 3M

interban k

Czech Rep 0.95 1.06 1.19 0.90



Hungary 0.08 0.11 0.17 0.03 Poland 1.74 1.74 1.76 1.70

Note: FRA are for ask prices quotes



(Additional reporting by Luiza Ilie in Bucharest)