Stocks gain, Czech crown holds onto gains on rate hike hopes



By Anita Komuves

BUDAPEST, April 22 (Reuters) - Central European currencies moved sideways on Thursday and regional stocks gained, as the dollar eased and investors' risk appetite grew on economic recovery hopes.

Market participants were also eyeing a meeting of the European Central Bank later in the day, looking for clues on how the central bank will react to an expected economic rebound.

The Czech crown was little changed, hovering around a 2-week high against the euro EURCZK= after firming in the previous session on hawkish signals from the central bank, analysts said.

The currency was lifted by rate hike expectations after central bank Governor Jiri Rusnok "gave a first indication for the timing of possible rate hike steps," Commerzbank wrote in a note.

Rusnok said in an interview with Reuters that a policy debate may start in August.

The Hungarian forint EURHUF= edged down 0.04% to trade at 363.50 to the euro after underperforming its peers and sliding in the previous session.

The forint ended weeks of steady gains last week when it turned around from levels near 356 per euro.

"This seems like a very strong correction after the currency's recent strengthening as fundamentals have not changed," an FX trader in Budapest said.

With better pandemic news, a fast pace of vaccinations and a weakening dollar, the currency is expected to recoup some of its losses in the near future, two traders said.

The Hungarian Government Debt Management Agency (AKK) will issue 20 billion forints worth of 30-year green government bonds on Thursday. HUISSUE The agency said it planned to sell 90 billion forints ($300 million) worth of the bond in 2021.

Hungary's central bank is committed to buying green government bonds as part of its asset purchase program, the bank told Reuters earlier this month.

Most stock markets in the region gained, tracking a rise in European markets. Warsaw .WIG20 added 1.06% while Budapest .BUX was up 0.65%. Prague .PX edged up 0.06%.

CEE

SNAPSHO AT

MARKETS T

1048 CET

CURRENC

IES

Latest Previous Daily Change

bid

close

change in 2021 EURCZK= Czech

<EURCZK= 25.8500 25.8550 +0.02 +1.47%

crown

>

% EURHUF= Hungary <EURHUF= 363.050 362.9200 -0.04% -0.09%

forint

>

0

EURPLN= Polish

<EURPLN= 4.5540

4.5571 +0.07 +0.11%

zloty

>

% EURRON= Romanian <EURRON= 4.9255

4.9250 -0.01% -1.23%

leu

>

EURHRK= Croatian <EURHRK= 7.5710

7.5755 +0.06 -0.31%

kuna

>

% EURRSD= Serbian <EURRSD= 117.540 117.5500 +0.01 +0.03%

dinar

>

0

%

Note:

calculated from

1800

daily

CET

change

Latest Previous Daily Change

close

change in 2021 .PX

Prague

.PX

1092.82 1092.130 +0.06 +6.39%

0

% .BUX

Budapest .BUX

43032.4 42753.60 +0.65 +2.20%

7

% .WIG20 Warsaw

.WIG20 2003.44 1982.40 +1.06 +0.98%

% .BETI

Buchares .BETI

11132.4 11093.29 +0.35 +13.53

t

1

%

% .SBITOP Ljubljan <.SBITOP 1052.16 1050.55 +0.15 +16.80

a

>

%

% .CRBEX Zagreb

.CRBEX 1886.32 1877.80 +0.45 +8.45%

% .BELEX1 Belgrade <.BELEX1 777.11

776.87 +0.03 +3.81% 5

5>

% .SOFIX Sofia

.SOFIX

519.75

521.70 -0.37% +16.14

%

Yield

Yield

Spread Daily

(bid)

change

vs

change

Bund

in

Czech

spread

Republic

CZ2YT=R

2-year <CZ2YT=R 0.6460

0.0250 +134b

+2bps R

R>

ps CZ5YT=R

5-year <CZ5YT=R 1.3490 -0.0910 +196b

-9bps R

R>

ps CZ10YT=

<CZ10YT= 1.7760 -0.0710 +205b

-6bps RR

10-year RR>

ps

Poland

PL2YT=R

2-year <PL2YT=R 0.1150 -0.0080 +081b

-1bps R

R>

ps PL5YT=R

5-year <PL5YT=R 0.9280 -0.0020 +153b

+0bps R

R>

ps PL10YT=

<PL10YT= 1.5680

0.0020 +184b

+1bps RR

10-year RR>

ps

FORWARD

3x6

6x9

9x12

3M

interba

nk

Czech

CZKFRA

0.43

0.65

1.00

0.36

Rep

<PRIBOR=

>

Hungary

HUFFRA

0.98

1.14

1.29

0.79

BUBOR=

Poland

PLNFRA

0.24

0.27

0.39

0.21

WIBOR=

Note:

are for ask

FRA

prices

quotes

*********************************************

*****************


Additional reporting by Robert Muller in Prague; Editing by Aditya Soni

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