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CEE MARKETS-Forint leads currencies higher in relief rally as no-deal Brexit fears ease

0822 GMT the zloty was trading 0.15% higher at

fears ease@ BUDAPEST, Sept 4 (Reuters) - Central European currencies and shares rebounded on Wednesday in line with a broad European relief rally on markets as political developments in Italy and Britain have eased investors' fears. The Hungarian forint jumped half a percent versus the euro, firming past 330 and away from a record low of 331.85 hit last week, and leading the region's currencies higher. British lawmakers have seized control of the parliamentary timetable to try to block a no-deal Brexit, giving some hope to investors fretting about the consequences of Britain leaving the European Union without any agreement. "Yesterday's parliamentary decision reduces the risk of Britain exiting without a deal, which, if confirmed in today's political decisions, may support market sentiment," Bank Millennium said in a note. "The EUR/PLN exchange rate fell to 4.35, reaching an important support, the breaking of which may give space for further strengthening of the zloty," it added. 4.3403 versus the euro. The region's fast-growing economies have outpaced the euro zone and August PMI manufacturing surveys on Monday which showed a pickup in activity had boosted local markets. But economic growth is expected to slow this year and next over uncertainties ranging from global trade tensions to a potential disorderly British exit from the EU, which could also hurt Central Europe by damaging trade relations. "This August was the most painful month for emerging market investors for some time," analysts at Raiffeisen said in a note. "That being said, central bank actions in September could help to stabilize the situation. For CEE, the ECB plays an important role in this respect." Interest rate cuts and a potential relaunch of quantitative easing by the ECB could support Central European currencies, Raiffeisen added. The ECB is expected to cut its deposit rate next week and announce a restart of its asset purchase program, but more than 80% of economists polled by Reuters were skeptical about the bank's ability to influence inflation over the medium term.

CEE SNAPSHO ATMARKETS T 1022

CET CURRENC IES

Latest Previou Daily Change

s

bid close change in 2019EURCZK= Czech <EURCZK= 25.8050 25.8330 +0.11% -0.38%crown >EURHUF= Hungary <EURHUF= 328.600 330.200 +0.49% -2.29%forint > 0 0EURPLN= Polish <EURPLN= 4.3403 4.3470 +0.15% -1.17%zloty >EURRON= Romanian <EURRON= 4.7295 4.7280 -0.03% -1.60%leu >EURHRK= Croatian <EURHRK= 7.4065 7.4045 -0.03% +0.05%kuna >EURRSD= Serbian <EURRSD= 117.410 117.600 +0.16% +0.76%dinar > 0 0Note: calculated from 1800daily CET

change

Latest Previou Daily Change

s

close change in 2019.PX Prague 1030.23 1030.39 -0.02% +4.43%

00

.BUX Budapest 39639.0 39405.1 +0.59% +1.28%7 9.WIG20 Warsaw 2130.78 2107.16 +1.12% -6.41%.BETI Buchares 9250.58 9245.71 +0.05% +25.28t %.SBITOP Ljubljan <.SBITOP 852.80 852.06 +0.09% +6.04%a >.CRBEX Zagreb 1867.73 1868.16 -0.02% +6.80%.BELEX1 Belgrade <.BELEX1 747.11 743.15 +0.53% -1.91%5 5>.SOFIX Sofia 569.84 571.80 -0.34% -4.14%

BONDS

Yield Yield Spread Daily(bid) change vs Bund change

in

Czech spread

Republic

CZ2YT=R 2-year <CZ2YT=R 1.1490 0.0200 +205bp +3bpsR R> sCZ5YT=R 5-year <CZ5YT=R 0.8480 0.0070 +178bp +0bpsR R> sCZ10YT= <CZ10YT= 1.0600 0.0240 +174bp -1bpsRR 10-year RR> s

Poland

PL2YT=R 2-year <PL2YT=R 1.5640 0.0110 +247bp +2bpsR R sPL5YT=R 5-year <PL5YT=R 1.7110 0.0290 +264bp +2bpsR R> sPL10YT= <PL10YT= 1.8570 0.0380 +254bp +1bpsRR 10-year RR> sFORWARD RATE AGREEME

NT

3x6 6x9 9x12 3M

interba nk

Czech 2.08 1.91 1.72 2.14Rep <PRIBOR=>Hungary 0.31 0.36 0.41 0.26Poland 1.72 1.69 1.63 1.72Note: are for askFRA prices

quotes

(Reporting by Jason Hovet in Prague, Krisztina Than in Budapest and Alan Charlish in Warsaw; Editing by Peter Graff)