* Zloty eases, but stocks hit highs in crash aftermath
* Crown closes in on 7-month high after current account data
* Forint, bonds extend gains after clear Fidesz poll win
(Adds detail, quote)
By Jason Hovet and Marius Zaharia
PRAGUE/BUCHAREST, April 13 (Reuters) - The zloty fell on
Tuesday, with investors watching moves to curb uncertainty after
Polish leaders died in a plane crash, while Hungary's forint and
bonds extended gains after a centre-right election win.
Polish markets have held up following the Saturday crash of
a government plane that killed President Lech Kaczynski, central
bank Governor Slawomir Skrzypek, and other senior officials.
The country's acting President Bronislaw Komorowski pledged
on Tuesday to quickly set an election date, while the central
bank's Monetary Policy Council agreed that Skrzypek's deputy
Piotr Wiesiolek would chair sessions []
"In Poland, there is still a broad uncertainty as to how the
political transition will unfold," BNP Paribas said in a note.
"At the NBP, things are getting a bit clearer ... we still think
a new governor will be appointed relatively swiftly before new
presidential elections."
The central bank had intervened on markets for the first
time in 10 years last Friday to knock the zloty from a 16-month
peak, and analysts say markets may try to test the bank again,
while the unit's firming pace will cool for now.
"A test of NBP intervention policy is still possible this
month, and we do not exclude a move below 3.80/euro on a 1-3
month horizon," ING analyst Mateusz Szczurek said in a note.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
* For stories on the Polish crash and its aftermath please
double click on []
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
The Polish stock market <> hit its highest level since
before the financial crisis swept through the region in
September 2008, trading a touch higher on Tuesday.
Analysts say Poland's strong economic fundamentals have
helped reassure investors []
The zloty <EURPLN=> was half-a-percent down on the day at
1359 GMT, with the intervention still fresh in the thoughts of
investors, while Polish bonds gained slightly.
The Czech crown <EURCZK=> edged up and attacked a
seven-month high following data showing a current account
surplus just below market expectations. []
Central banker Eva Zamrazilova said on Tuesday she was
comfortable with interest rates at 1 percent[]. Two
other central bankers voted for a 25 basis point cut in March.
HUNGARIAN RATE VIEW UNCHANGED
Hungarian markets continued a strong rally since Sunday's
first round of elections that brought a sweeping victory for
centre-right Fidesz party. [] []
The forint <EURHUF=> rose 0.3 percent. Bond yields -- a day
after their biggest daily fall in eight months -- dipped, with
the 5-year bond yield at a 4-1/2 year trough. Yields have fallen
30-40 basis points since the election.
Lower supply and expectations of rates cuts have helped spur
a bond rally that has shaved around 150 basis points from bond
yields this year. Analysts said rate cuts could continue despite
a higher-than-expected March inflation reading released on
Tuesday. [] []
On Monday, Hungary's next prime minister Viktor Orban set
tax cuts and growth as priorities for his party, which was close
to getting an important two-thirds majority in the second round
at the end of the month that will help it push through vital
reforms for the IMF-aided country. []
"We can assume that a two-thirds majority for Fidesz would
be regarded as positive. Now it must be considered how deep that
outcome has been built into the prices," one trader said.
Elsewhere, Romania's leu <EURRON=> was 0.3 percent down.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 25.137 25.168 +0.12% +4.7%
Polish zloty <EURPLN=> 3.881 3.863 -0.46% +5.75%
Hungarian forint <EURHUF=> 264.25 265.1 +0.32% +2.31%
Croatian kuna <EURHRK=> 7.27 7.265 -0.07% +0.54%
Romanian leu <EURRON=> 4.137 4.124 -0.31% +2.43%
Serbian dinar <EURRSD=> 99.48 99.65 +0.17% -3.62%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
3-yr T-bond CZ3YT=RR -5 basis points to 63bps over bmk*
7-yr T-bond CZ7YT=RR 0 basis points to +70bps over bmk*
10-yr T-bond CZ10YT=RR -6 basis points to +62bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond PL2YT=RR +3 basis points to +347bps over bmk*
5-yr T-bond PL5YT=RR -3 basis points to +290bps over bmk*
10-yr T-bond PL10YT=RR +1 basis points to +243bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR -2 basis points to +431bps over bmk*
5-yr T-bond HU5YT=RR -7 basis points to +364bps over bmk*
10-yr T-bond HU10YT=RR -1 basis points to +341bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1559 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
For related news and prices, click on the codes in brackets: All
emerging market news []
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(Reporting by Reuters bureaus, writing by Jason Hovet and
Marius Zaharia, editing by Stephen Nisbet)
