Wires

CEE MARKETS-Currencies weaker, stocks grind higher amid U.S.-China trade hope

WARSAW, Nov 18 (Reuters) - Central European stocks pushed higher on Monday although currencies were on the back foot with investors cautiously awaiting developments in U.S.-China trade talks and watching a Hungarian interest rate decision on Tuesday where no change was expected. Last week saw reports that the trade talks had hit a snag over how and when to reduce tariffs, and how much U.S. agricultural products China would commit to buy, but state media Xinhua said the countries had "constructive talks" on trade in a high-level phone call on Saturday. "It seems that market optimism was slightly subdued, because again there were no real events following Trump's optimistic narrative. So we remain in a demanding macro environment influenced by the trade war," DM BOS analyst Konrad Ryczko wrote in a note. The Polish zloty slipped 0.2% against the euro to 4.287. The Hungarian forint was down 0.3% at 334.45 and the Czech crown fell 0.1% to the weak side of 25.60. Stock markets grinded higher, led by a 0.7% rise in Budapest at 0950 GMT. Most central European economies reported slowing or below-expectation third-quarter growth figures last week, showing signs the slowdown in trade partners was starting to have an effect on the region. Growth has been buoyed this year by strong domestic demand. The National Bank of Hungary (NBH) is expected to keep interest rates unchanged at its monthly policy meeting on Tuesday. Central Europe's most dovish central bank left its base rate at 0.9% and the overnight deposit rate at -0.05% in October. Hungary's central bank governor Gyorgy Matolcsy told a parliamentary committee hearing on Monday that average inflation was seen within the central bank's target range around 3% this year. Polish benchmark 10-year yields rose 2 basis points to 2.12%, while Czech 10-year yields edged just over 1 basis point higher to 1.481%. "We've got a bit higher yields across the curve ... the explanation is very simple, we've got a similar tendency on core markets," said Pekao economist Arkadiusz Urbanski.

CEE MARKETS SNAPSHOT AT

1050 CET CURRENCIES

Latest Previous Daily Changebid close change in 2019EURCZK= Czech crown 25.6020 25.5860-0.06% +0.41%EURHUF= Hungary forint 335.4500 334.5000-0.28% -4.28%EURPLN= Polish zloty 4.2870 4.2765-0.24% +0.06%EURRON= Romanian leu 4.7740 4.7702-0.08% -2.51%EURHRK= Croatian kuna 7.4370 7.4370+0.00% -0.36%EURRSD= Serbian dinar 117.2800 117.4500+0.14% +0.87%Note: daily change calculated from 1800 CETLatest Previous Daily Changeclose change in 2019.PX Prague 1084.28 1083.1100+0.11% +9.91%.BUX Budapest 43725.46 43384.63+0.79% +11.72%.WIG20 Warsaw 2236.84 2233.87+0.13% -1.75%.BETI Bucharest 9706.39 9692.51+0.14% +31.46%.SBITOP Ljubljana 881.36 880.68+0.08% +9.59%.CRBEX Zagreb 1981.90 1977.48+0.22% +13.33%.BELEX15 Belgrade 769.64 769.32+0.04% +1.04%.SOFIX Sofia 553.29 553.88-0.11% -6.93%

BONDS

Yield Yield Spread Daily(bid) change vs Bund change in

Czech Republic spread

CZ2YT=RR 2-year 1.3900 0.0280+202bps +4bpsCZ5YT=RR 5-year 1.1940 -0.0190+178bps -3bpsCZ10YT=RR 10-year 1.4810 0.0130+180bps +0bps

Poland

PL2YT=RR 2-year 1.4060 0.0070+204bps +1bpsPL5YT=RR 5-year 1.8390 0.0110+242bps +0bpsPL10YT=RR 10-year 2.1190 0.0190+244bps +1bpsFORWARD RATE AGREEMENT3x6 6x9 9x12 3M interbankCzech Rep 2.24 2.22 2.17

2.17

Hungary 0.27 0.32 0.36

0.00

Poland 1.73 1.72 1.69

1.71

Note: FRA quotes are for ask prices**************************************************************

(Reporting by Alan Charlish in Warsaw and Jason Hovet in Prague; Editing by Maju Samuel)