CEE MARKETS-Stocks track global shares down, Romanian leu shrugs off fiscal risks

Market trading boards are seen at the Australian Securities Exchange in Sydney, Friday, February 9, 2018. ( AAP Image/Ben Rushton) NO ARCHIVING
    BUCHAREST, Aug 20 (Reuters) - Central European stocks
tracked global markets lower on Thursday after Federal Reserve
minutes highlighted doubts about the U.S. economic recovery,
while the Romanian leu shrugged off rising fiscal risks.    
    By 0845 GMT, Prague's bluechip index was 1.2% lower on
the day and Warsaw's down 0.8%.
    "The morning starts in a risk-off mood after mixed
impressions from FED meeting minutes," Komercni Banka fixed
income trader Marek Lesko said in a daily note.
    In Romania, lawmakers rejected a government decree on
Wednesday that would have raised child benefits by less than
originally planned, piling pressure on the cabinet as it
grapples with the economic fallout from the COVID-19 pandemic.

    Even before the pandemic, Romania was struggling with a
widening budget shortfall, eroded by years of political
instability and fiscal largesse during a previous Social
Democrat government. Three major credit rating agencies have
Romania on their lowest investment grade with negative outlooks.
    The current centrist minority government is trying to lower
already approved hikes in child benefits and state pensions via
emergency decrees, but parliament could ultimately change
course. The opposition Social Democrats have also filed a no
confidence vote against the cabinet. 
    The Romanian leu was flat against the euro at
4.8390 on Thursday.
    "So far, the leu has been reasonably unaffected by the
political upheavals, but we urge caution," Commerzbank said. 
    "The risk of a rating downgrade continues and the question
is when the underlying risks will be more heavily reflected in
the leu exchange rates."
    Elsewhere in the region, the Czech crown edged
0.1% lower against the euro, while the Polish zloty
rose 0.2%. Hungarian markets are closed on Thursday and Friday
for a national holiday.
    Polish industrial output rose 1.1% year-on-year in July,
above forecast.
    The Polish government will announce an amended 2020 budget
later on Thursday. Before the pandemic, Poland had planned to
have its first balanced budget in three decades in 2020.

           CEE       SNAPSHO   AT                      
           MARKETS   T        1100              
                              CET               
                     CURRENC                           
                     IES                        
                     Latest   Previou  Daily    Change
                              s                 
                     bid      close    change   in 2020
 Czech     <EURCZK=  26.0770  26.0700   -0.03%   -2.47%
 crown     >                                    
 Hungary   <EURHUF=  351.050  348.410   -0.75%   -5.67%
 forint    >               0        0           
 Polish    <EURPLN=   4.4010   4.4060   +0.11%   -3.29%
 zloty     >                                    
 Romanian  <EURRON=   4.8390   4.8425   +0.07%   -1.05%
 leu       >                                    
 Croatian  <EURHRK=   7.5300   7.5305   +0.01%   -1.12%
 kuna      >                                    
 Serbian   <EURRSD=  117.500  117.600   +0.09%   +0.06%
 dinar     >               0        0           
 Note:     calculated from             1800            
 daily                                 CET      
 change                                         
                                                       
                     Latest   Previou  Daily    Change
                              s                 
                              close    change   in 2020
 Prague               887.66  897.450   -1.09%  -20.43%
                                    0           
 Budapest            36043.5  36043.5   +0.00%  -21.79%
                           6        6           
 Warsaw              1817.46  1833.22   -0.86%  -15.47%
 Buchares            8691.35  8687.24   +0.05%  -12.89%
 t                                              
 Ljubljan  <.SBITOP   860.21   861.69   -0.17%   -7.09%
 a         >                                    
 Zagreb              1591.35  1593.75   -0.15%  -21.12%
 Belgrade  <.BELEX1   668.81   670.04   -0.18%  -16.57%
           5>                                   
 Sofia                438.54   434.46   +0.94%  -22.81%
                                                       
                     Yield    Yield    Spread   Daily
                     (bid)    change   vs Bund  change
                                                in
 Czech                                          spread
 Republic                                       
   2-year  <CZ2YT=R   0.1250  -0.0170   +080bp    -1bps
           R>                                s  
   5-year  <CZ5YT=R   0.6330  -0.0810   +131bp    -8bps
           R>                                s  
           <CZ10YT=   0.9810  -0.0250   +146bp    -2bps
 10-year   RR>                               s  
 Poland                                                
   2-year  <PL2YT=R   0.1660  -0.0230   +084bp    -2bps
           R>                                s  
   5-year  <PL5YT=R   0.7550  -0.0260   +143bp    -2bps
           R>                                s  
           <PL10YT=   1.3360  -0.0310   +182bp    -2bps
 10-year   RR>                               s  
           FORWARD                                     
                     3x6      6x9      9x12     3M
                                                interba
                                                nk
 Czech                  0.36     0.36     0.41     0.34
 Rep       <PRIBOR=                             
           >                                    
 Hungary                0.77     0.80     0.87     0.61
                                                
 Poland                 0.22     0.23     0.25     0.23
                                                
 Note:     are for ask                                 
 FRA       prices                               
 quotes                                         
 *********************************************         
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 (Reporting by Luiza Ilie in Bucharest, Robert Muller in Prague
and Alan Charlish in Warsaw; Editing by Mark Potter)
  
 
 

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