Wires

CEE MARKETS-Stocks, currencies rise on strong Chinese manufacturing

Joanna Plucinska

WARSAW, Dec 2 (Reuters) - Central European stock markets largely gained, tracking their global peers, and some regional currencies strengthened after an upbeat China manufacturing survey offset discouraging signals in the region's PMI results. China's factory activity showed a surprising rise for November, increasing risk appetite in Asia and Europe. In Central Europe, the PX index in Prague rose 0.45% and Budapest's main index 0.40%. Poland's WIG 20 was down 0.11%. Czech lender Moneta Money Bank's shares roses over 2% after it announced late Friday it was in exclusive talks to buy the Czech building savings and mortgage business of Germany's Wuestenrot & Wuerttembergische AG. Most central European currencies gained as well. "I think the stronger data in China is something which should benefit Europe and European currencies ... that's supportive for the euro bloc and euro equivalents like the zloty," said Rafal Benecki, chief economist at ING Bank Slaski. The zloty had gained 0.3% by 1016 GMT, with a Santander note saying they expect the momentum of the EURPLN to continue towards 4.34. The Hungarian forint also rebounded, gaining 0.39% to 333.18 per euro, after sinking to a record low on Thursday. CIB Bank analysts said in a note no positive correction was in sight that would lead to lasting gains for the forint. "One of the main drivers behind the exchange rate could continue to be expectations for a continuation of loose monetary policy," CIB Bank analysts said. HPMI data in the region mostly remained negative, following continued shrinking in euro zone factory activity. The exception was Hungary, where the PMI rose in November. Polish manufacturing activity continued its decline, albeit at a slower pace than the month before. New orders fell, but more slowly. Czech manufacturing activity saw a drop to 43.5 in November, closer to July's 10-year low of 43.1. In Hungary, production volumes and new orders declined but still remained above 50 points, with PMI rising to 53.0 in November. Bond yields also rose in the region, with 10-year yields in Poland up 5 basis points to 2.064% and in the Czech Republic up 2.9 basis points to 1.493%. "We follow the core market ... risk appetite is related to macro figures in the euro zone and expectations for the Fed policy meeting next week. Markets are afraid that the Fed's rhetoric may be less dovish than expected," said Arkadiusz Urbanski, an economist at Bank Pekao SA.

CEE MARKETS SNAPSHOT AT

1116 CET CURRENCIES

Latest Previous Daily Changebid close change in 2019EURCZK= Czech 25.5460 25.5570 +0.04%+0.63%

crown

EURHUF= Hungary 333.1800 334.4850 +0.39%

-3.63% forint

EURPLN= Polish 4.3030 4.3158 +0.30%

-0.31% zloty

EURRON= Romanian 4.7770 4.7829 +0.12%

-2.57% leu

EURHRK= Croatian 7.4390 7.4375 -0.02%

-0.39% kuna

EURRSD= Serbian 117.4700 117.6000 +0.11%+0.71%

dinar

Note: calculated from 1800daily CET

change

Latest Previous Daily Changeclose change in 2019.PX Prague 1085.60 1080.750 +0.45%+10.04%

0

.BUX Budapest 43878.58 43704.85 +0.40%+12.11%.WIG20 Warsaw 2156.59 2158.94 -0.11%

-5.27%

.BETI Bucharest 9897.36 9886.93 +0.11%+34.04%.SBITOP Ljubljana 898.35 896.10 +0.25%+11.70%.CRBEX Zagreb 2002.01 1995.61 +0.32%+14.48%.BELEX15 Belgrade 771.50 770.92 +0.08%+1.29%.SOFIX Sofia 547.41 546.57 +0.15%

-7.91% BONDS

Yield Yield Spread Daily(bid) change vs Bund change inCzech spread

Republic

CZ2YT=RR 2-year 1.5070 0.0240 +212bp+1bps

s

CZ5YT=RR 5-year 1.2320 0.0060 +177bp

-5bps s

CZ10YT=RR 10-year 1.4930 0.0290 +178bp

-4bps s Poland

PL2YT=RR 2-year 1.3830 -0.0060 +200bp

-2bps s

PL5YT=RR 5-year 1.7670 0.0210 +231bp

-3bps s

PL10YT=RR 10-year 2.0640 0.0500 +235bp

-2bps s

FORWARD RATE AGREEMEN

T

3x6 6x9 9x12 3M

interbank

Czech Rep 2.24 2.24 2.20 2.18Hungary 0.28 0.30 0.37 0.17Poland 1.73 1.70 1.66 1.71

Note: FRA are for ask prices quotes

(Reporting by Joanna Plucinska, Alan Charlish in Warsaw, Robert Muller and Jason Hovet in Prague, Krisztina Than in Budapest; editing by Larry King)