Wires

CEE MARKETS-Economic growth slowdown in focus, currencies mixed

BUCHAREST, Nov 14 (Reuters) - Central European currencies and stocks were mixed against the euro early on Thursday as reports showed economic growth across the region was mostly below expectations in the third quarter. The Hungarian forint outperformed, gaining 0.2% against the euro by 1010 GMT. Hungarian economic growth accelerated more than expected, to an annual 5.0% in the third quarter. Growth in central and eastern Europe has been driven by domestic consumption as labor force shortages have driven wages higher. While domestic demand has so far offset a slowdown in the region's euro zone trade partners, Thursday data suggested that growth was starting to be affected. "The third-quarter GDP data for Central and Eastern Europe showed that while regional GDP growth slowed to its weakest pace in over three years, growth remained strong in Hungary and Poland," Capital Economics said in a note. "But with euro-zone weakness likely to take a heavier toll, growth is likely to slow more sharply in 2020."

* For an interactive version: https://tmsnrt.rs/2KgEAwH

Polish growth slowed to 3.9% year-on-year in the third quarter, below market expectations of 4.1%. In Romania, the economy grew 3.0% in the third quarter, below a market consensus of 3.8%. Finance Minister Florin Citu said the budget deficit could exceed 4% of gross domestic product this year without additional measures.

The Czech economy expanded at its slowest quarterly pace in more than three years from July to September as industrial production lost momentum, preliminary Statistics Office data showed on Thursday. "From the central bank's point of view, we assess today`s data as neutral or slightly anti-inflationary," Erste Bank said in a daily note. "We do not change our view of the stability of interest rates as the most likely scenario for the rest of this and the next year." The Czech crown was up 0.1%. The Polish zloty and the Romanian leu were flat.

CEE SNAPSHO ATMARKETS T 1109

CET CURRENC IES

Latest Previou Daily Change

s

bid close change in 2019Czech <EURCZK= 25.5500 25.5860 +0.14% +0.61%crown >Hungary <EURHUF= 333.750 334.350 +0.18% -3.79%forint > 0 0Polish <EURPLN= 4.2890 4.2898 +0.02% +0.01%zloty >Romanian <EURRON= 4.7650 4.7649 -0.00% -2.33%leu >Croatian <EURHRK= 7.4390 7.4383 -0.01% -0.39%kuna >Serbian <EURRSD= 117.390 117.520 +0.11% +0.78%dinar > 0 0Note: calculated from 1800daily CET

change

Latest Previou Daily Change

s

close change in 2019Prague 1081.47 1084.96 -0.32% +9.62%

00

Budapest 43078.6 43216.3 -0.32% +10.070 4 %Warsaw 2243.70 2235.52 +0.37% -1.45%Bucharest 9704.85 9729.44 -0.25% +31.44

%

Ljubljana <.SBITOP 874.26 878.81 -0.52% +8.70%>Zagreb 1966.14 1969.64 -0.18% +12.43

%

Belgrade <.BELEX1 769.06 769.32 -0.03% +0.97%

5>

Sofia 557.23 558.73 -0.27% -6.26%

BONDS

Yield Yield Spread Daily(bid) change vs Bund change

in

Czech spread

Republic

2-year <CZ2YT=R 1.4440 0.0630 +208bp +8bpsR> s5-year <CZ5YT=R 1.2030 -0.0230 +179bp -1bpsR> s10-year CZ10YT= 1.4890 -0.0540 +181bp -4bpsRR> s

Poland

2-year <PL2YT=R 1.3930 0.0000 +203bp +1bpsR> s5-year <PL5YT=R 1.7880 -0.0180 +238bp -1bpsR> s10-year <PL10YT= 2.0720 -0.0160 +239bp +0bpsRR> sFORWARD RATE AGREEME

NT

3x6 6x9 9x12 3M

interba nk

Czech Rep 2.23 2.21 2.13 2.18

<PRIBOR=

>

Hungary 0.26 0.31 0.35 0.19Poland 1.73 1.69 1.67 1.71

Note: FRA are for ask

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

(Reporting by Luiza Ilie in Bucharest and Jason Hovet in Prague; Editing by)