Wires

CEE MARKETS-Currencies firm slightly as all eyes on Brexit vote

Alan Charlish and Anna Wlodarczak-Semczuk

WARSAW, Oct 18 (Reuters) - Central Europe's main currencies mostly firmed slightly on Friday, with a sentiment boost from a newly-agreed Brexit deal offsetting worries about the global economy as China posted weaker-than expected growth in the third quarter. The twin sagas of Brexit and the trade war between the United States and China have shaped risk sentiment in global financial markets this year, with emerging market assets particularly sensitive to developments. Markets got a boost on Thursday when EU leaders unanimously backed the new Brexit deal, but British Prime Minister Boris Johnson faces a battle to secure parliament's backing on Saturday if he still hopes to take Britain out of the EU on Oct. 31. In China, third quarter gross domestic product rose just 6.0% year-on-year, as the trade war with the U.S. hit factory production. At 0848 GMT the Polish zloty was flat against the euro at 4.2825. The Czech crown was 0.14% stronger at 25.668 while the Hungarian forint firmed 0.12% to 330.69. "The market is waiting for the final Brexit news, tomorrow's vote in parliament in London... It's a major, major risk event tomorrow," said a Warsaw-based currency trader. "The zloty is quite strong... I think the scope to move lower in euro/zloty is limited, we've reached the bottom of the range." In Poland, September industrial output and PPI both beat analysts' estimates, rising 5.6% and 0.9% year on year respectively. "0.9% is not a level that would cause anxiety, the market reaction seems neutral to me, because the situation on the markets is determined by global factors," said Grzegorz Maliszewski, Chief economist at Bank Millennium. Czech 10-year yields rose 2.8 basis points to 1.453%, while Polish 10-year paper traded at 2.025%, up almost 1 basis point. Central European bonds often track western European peers, and eurozone bond yields inched up ahead of Saturday's Brexit vote. Stocks were mixed with Prague's PX index rising 0.64% while Warsaw's WIG 20 fell 0.56%. Polish mining company JSW was the worst performer on the WIG 20, falling 3.5% after it reported a drop in coal sales in the third quarter despite an increase in production.

CEE SNAPSHOT ATMARKETS 1048 CET

CURRENCI ES

Latest Previous Daily Changebid close change in 2019Czech 25.6700 25.6730 +0.01% +0.14%

crown

Hungary 330.6900 331.1000 +0.12% -2.90%

forint

Polish 4.2825 4.2824 -0.00% +0.17%

zloty

Romanian 4.7550 4.7538 -0.03% -2.12%

leu

Croatian 7.4405 7.4423 +0.02% -0.41%

kuna

Serbian 117.5000 117.6100 +0.09% +0.68%

dinar

Note: calculated from 1800 CET

daily change

Latest Previous Daily Changeclose change in 2019Prague 1040.87 1034.300 +0.64% +5.50%

0

Budapest 40627.51 40717.17 -0.22% +3.80%Warsaw 2161.52 2173.75 -0.56% -5.06%Bucharest 9585.69 9558.18 +0.29% +29.82%Ljubljana 873.25 871.28 +0.23% +8.58%Zagreb 2016.63 2011.29 +0.27% +15.31%Belgrade <.BELEX15 744.53 747.83 -0.44% -2.25%>Sofia 565.41 563.67 +0.31% -4.89%

BONDS

Yield Yield Spread Daily(bid) change vs Bund change

in

Czech spread

Republic

2-year <CZ2YT=RR 1.3980 0.0680 +205bps +6bps>5-year <CZ5YT=RR 1.1060 -0.0470 +174bps -6bps>10-year <CZ10YT=R 1.4530 0.0280 +184bps +1bps

R> Poland

2-year <PL2YT=RR 1.5010 -0.0090 +215bps -1bps>5-year <PL5YT=RR 1.7870 0.0130 +242bps +0bps>10-year <PL10YT=R 2.0250 0.0090 +241bps -1bps

R>

FORWARD RATE AGREEMEN

T

3x6 6x9 9x12 3M

interban k

Czech Rep < 2.31 2.32 2.25 2.18

PRIBOR=>

Hungary < 0.27 0.31 0.31 0.21

BUBOR=>

Poland < 1.73 1.70 1.68 1.71

WIBOR=> Note: FRA are for ask prices quotes

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(Reporting by Alan Charlish and Anna Wlodarczak-Semczuk in Warsaw, Radu-Sorin Marinas in Bucharest and Krisztina Than in Budapest; Editing by Toby Chopra)