* Currencies stabilise after this week's falls
* Czech final Q3 GDP, inflation support flat rates
* Hungary Q3 GDP and Oct trade surplus beat estimates
By Marius Zaharia
BUCHAREST, Dec 9 (Reuters) - Emerging Europe's currencies
stabilised on Wednesday, after big losses earlier this week, as
data beat expectations in Hungary and supported views that
interest rates would remain unchanged in the Czech Republic.
Czech final third-quarter data showed the economy fell 4.1
percent on the year [], in line with estimates,
while November annual inflation stood at 0.5 percent, a touch
higher than forecast [].
"The breakdown confirms that household spending and general
consumption performed quite well," said Raffaella Tenconi of
Wood&Co in Prague. "Inflation ... came out higher than I
expected. It does argue that probably rates will remain
unchanged in the near term."
Central bank board member Eva Zamrazilova told Reuters
[] her vote on rates next week would largely depend
on Wednesday's data. She said signs of increasing inflationary
pressure or higher than expected consumer demand would support
keeping rates at 1.25 percent.
Meanwhile, Vice-Governor Mojmir Hampl said he saw no reason
to change his vote for stable interest rates at the next policy
meeting. []
At 0836 GMT, the Czech crown <EURCZK=> and the Hungarian
forint <EURHUF=> were 0.1-0.2 percent weaker, while the Polish
zloty <EURPLN=> was flat.
In Hungary, final GDP data showed the economy contracting by
7.1 percent on the year in July through September, an inch less
than in a preliminary estimate [], while foreign
trade data for October showed a surplus of 464 million euros,
well above expectations [].
Data follows Tuesday's figures showing October industrial
output grew on the month for the second time [].
Recent data in central Europe has encouraged some investors
to believe a recovery may be under way, but disappointing
industrial data in Germany on Tuesday raised concerns about its
trajectory. []
Romania's leu <EURRON=> has held steady this week, following
a hotly-contested presidential race won by incumbent Traian
Basescu by a razor-thin margin, a result challenged by the
opposition. []
On Tuesday, central bank's chief economist said it was wise
to curb appreciation of the leu, even though the currency was
already perceived as weak because it could help exports
[].
But dealers suspected covert central bank interventions to
support the unit this week.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2009
Czech crown <EURCZK=> 25.721 25.698 -0.09% +4.01%
Polish zloty <EURPLN=> 4.127 4.126 -0.02% -0.29%
Hungarian forint <EURHUF=> 273.76 273.35 -0.15% -3.73%
Romanian leu <EURRON=> 4.236 4.233 -0.07% -5.23%
Serbian dinar <EURRSD=> 95.087 95.22 +0.14% -5.9%
*Benchmark is German bond equivalent.
All data taken from Reuters at 1036 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaus, Writing by Marius Zaharia;
Editing by Mike Peacock)
