* Currencies inch higher, ECB meeting eyed
* Hungary cbank vice gov says more rate hikes likely
* Debt tender to test sentiment after Hungary policy moves
By Marius Zaharia
BUCHAREST, Dec 2 (Reuters) - Central European markets showed
little reaction to lackluster Hungarian trade data and growth
numbers on Romania on Thursday, with all eyes on an ECB meeting
investors hope could help calm the euro zone's debt crisis.
Currencies held on to previous session's gains but trade was
thin as investors awaited to see if the European Central Bank
would take any measures to ease debt worries.
At 0901 GMT, the Czech crown <EURCZK=>, the Hungarian forint
<EURHUF=> and the Romanian leu <EURRON=> were 0.1 percent
stronger, while the Polish zloty <EURPLN=> was a touch lower.
"Data did not have any impact ...Everybody now waits for a
news conference by (ECB head Jean-Claude) Trichet," one
Bucharest-based trader said.
Regional currencies could track the euro lower if the ECB
dissapoints, traders said.
Assets gained across the region on Wednesday after Poland,
Hungary and Czech Republic all posted strong PMI growth,
alleviating some of the fiscal worries in the region and
boosting bets for a steady economic recovery in emerging Europe.
Romania published final GDP data, confirming a flash
estimate of a 2.5 percent contraction in the third quarter,
caused mainly by austerity measures taken by the government over
the summer. []
In Hungary, September's final trade figures showed a 540
million euros surplus, a touch below a preliminary estimate
[]
The data added to arguments for the Polish central bank to
start tightening its policy, but rate-setters in Czech Republic
said interest rates were unlikely to rise anytime soon.
In Hungary, vice governor Ferenc Karvalits told national
radio that the central bank was likely to raise borrowing costs
further but the tempo of any moves would depend on economic data
[]
The bank surprised markets with a 25 basis point rate hike
on Monday, raising the key interest rate to 5.5 percent from an
all-time low of 5.25 percent where it had been for the preceding
six months. []
Hungary will offer 40 billion forints of government debt
for sale on Thursday, a key gauge of investor sentiment after a
string of government policy moves that have unnerved markets
over the past week and driven bond yields higher.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 24.959 24.98 +0.08% +5.44%
Polish zloty <EURPLN=> 4.009 4.007 -0.05% +2.37%
Hungarian forint <EURHUF=> 279.05 279.4 +0.13% -3.12%
Croatian kuna <EURHRK=> 7.421 7.422 +0.01% -1.51%
Romanian leu <EURRON=> 4.29 4.292 +0.05% -1.23%
Serbian dinar <EURRSD=> 107.23 107.17 -0.06% -10.58%
All data taken from Reuters at 1001 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 ...)
