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CEE MARKETS-Stocks firm after U.S.-China trade talks confirmed

BUCHAREST, Sept 5 (Reuters) - Central European stocks rose in tandem with other European shares on Thursday, bolstered by scheduled U.S.-China trade talks and Britain's parliamentary vote against a no-deal exit from the European Union. Currencies held steady. By 0930 GMT, Prague's blue-chip index led gains with a 0.5% advance on the day. Warsaw's index was 0.4% higher. China and the United States on Thursday agreed to hold high-level trade talks in early October in Washington, amid fears that an escalating trade war could trigger a global economic recession. Central European currencies, which had rebounded on Wednesday were mixed in early trade, with investors still wary of further turbulence. The Polish zloty and Romanian leu were each down 0.1% against the euro. The Hungarian forint and Czech crown were flat at 329.5 and 25.8490 per euro, respectively, with the crown ignoring stronger-than- expected retails sales. "Sentiment is favorable on (global) share markets," brokerage Equilor said in a note. "Investors can take a breath, as several risks have decreased on the market but we think hectic movements are not over yet." "The forint's exchange rate, after a quick (positive) correction, again started to ease and in the coming days it could move between 329 and 331 to the euro. It could leave this range towards weakening further if international sentiment worsens." However, analysts expect central Europe's main currencies to firm against the euro in the next 12 months, a Reuters poll found, depending on calmer conditions in global markets and delivery of expected monetary easing in the euro zone and the United States. Expected loose monetary policy by the world's largest central banks has eased pressure to act on policymakers in central Europe, where consumption-driven economic growth has stoked inflation in certain countries. Czech retail sales data on Thursday and Hungarian retail sales data on Wednesday were both strong. In Romania, a debt tender for Sept. 2031 bonds later on Thursday was expected to show "the extent to which Romanian government bonds are still in vogue for international investors," ING said in a note.

CEE SNAPSHO ATMARKETS T 1158

CET CURRENC IES

Latest Previou Daily Change

s

bid close change in 2019Czech <EURCZK= 25.8490 25.8530 +0.02% -0.55%crown >Hungary <EURHUF= 329.500 329.450 -0.02% -2.55%forint > 0 0Polish <EURPLN= 4.3390 4.3382 -0.02% -1.14%zloty >Romanian <EURRON= 4.7303 4.7266 -0.08% -1.61%leu >Croatian <EURHRK= 7.4010 7.4043 +0.04% +0.12%kuna >Serbian <EURRSD= 117.390 117.470 +0.07% +0.78%dinar > 0 0Note: calculated from 1800daily CET

change

Latest Previou Daily Change

s

close change in 2019Prague 1031.50 1028.39 +0.30% +4.56%

00

Budapest 39744.8 39753.4 -0.02% +1.55%5 9Warsaw 2111.14 2102.73 +0.40% -7.27%Bucharest 9281.50 9262.37 +0.21% +25.70%Ljubljana <.SBITOP 845.84 850.33 -0.53% +5.17%>Zagreb 1866.58 1869.35 -0.15% +6.73%Belgrade <.BELEX1 745.62 747.12 -0.20% -2.11%

5>

Sofia 574.75 573.23 +0.27% -3.32%

BONDS

Yield Yield Spread Daily(bid) change vs Bund change

in

Czech spread

Republic

2-year <CZ2YT=R 1.1720 0.0420 +205bp +2bpsR> s5-year <CZ5YT=R 0.9130 0.0480 +180bp +1bpsR> s10-year <CZ10YT= 1.0900 0.0250 +171bp -3bpsRR> s

Poland

2-year <PL2YT=R 1.5590 -0.0170 +243bp -4bpsR> s5-year <PL5YT=R 1.7780 0.0470 +266bp +1bpsR> s10-year <PL10YT= 1.9570 0.0680 +258bp +1bpsRR> sFORWARD RATE AGREEME

NT

3x6 6x9 9x12 3M

interban k

Czech Rep 2.10 1.94 1.77 2.14

<PRIBOR=

>

Hungary 0.32 0.33 0.35 0.25Poland 1.74 1.69 1.65 1.72

Note: FRA are for ask

quotes prices*************************************************************

(Reporting by Luiza Ilie in Bucharest, Jason Hovet in Prague, Krisztina Than in Budapest and Alan Charlish in Warsaw; Editing by Susan Fenton)