* GDP data shows weak recovery in Hungary, Czech, Romania
* Investors cut risk, Greece worries remain
* Poland's PM wants to prepare constitution for euro
(Adds new quote, prices)
By Jason Hovet and Dagmara Leszkowicz
PRAGUE/WARSAW, Feb 12 (Reuters) - Central Europe's
currencies took a pummelling on Friday on the back of a raft of
lacklustre growth data and China's move to raise reserve
requirements and cool its economy.
Hungary's forint, the Czech crown and Romania's leu all fell
after growth numbers that showed the Hungarian and Romanian
economies remained in recession in the last three months of the
year while the Czech recovery stalled. []
Poland's zloty, however, managed to eke out a gain, helped
by the view that it will outperform most of the region after
avoiding a recession last year.
"A major negative surprise from the Czech Q4 growth number
and some market disappointment over a lack of substance
regarding Greece yesterday set a negative mood in the region,"
said Anders Svendsen, senior analyst at Nordea.
The forint <EURHUF=> and leu <EURON=> fell 0.2 percent and
0.3 percent respectively, while the crown <EURCZK=> was only
just down against the European single currency, battered by
concerns over its weaker members.
The zloty <EURPLN=> was up 0.1 percent to the euro. It had
firmed below the key 4.0 per euro level before after the news
that China was tightening monetary conditions again hit appetite
for assets in global emerging markets.
Stocks were able to hold onto gains, with Warsaw <>
leading and only Prague's PX <> edging down.
Analysts said better economic fundamentals made the zloty a
safer bet than emerging Europe peers and -- at the moment -- the
euro, which has been hit by rising concern over debt in euro
zone periphery countries like Greece.
Bond markets were mixed with Hungary's papers up at the
longer-end of the curve, while short-dated papers flat due to
the high inflation figure.
"Interest rate swaps are higher by about five basis points
from yesterday after the inflation figures... I don't think that
the NBH will cut rates at its next meeting (on Feb. 22)," one
Budapest-based dealer said.
The country's parliamentary elections in April also raise
uncertainties, which in effect may strengthen hawks in the rate
setting Monetary Council, dealers also said.
* For a "Take a Look" on Greece, click on []
* Fpr a "Take a Look" on Hungary's elections, click on
[]
EURO, RATES
The Polish Prime Minister Donald Tusk said on Friday the
ruling Civic Platform (PO) wants to change the constitution as
soon as possible to prepare the legal framework for euro
adoption. []
Tusk's government declined to set a euro entry target date
in an updated convergence plan published earlier this week. But
some government officials have recently signalled they see 2015
as the earliest likely date for euro zone entry.
Analysts polled by Reuters late last year said 2014 was a
likely date.
The Czechs also did not set date to drop the crown, but the
country aims to cut its fiscal gap to the 3 percent of GDP
required for euro entry by 2013.
-------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2009
Czech crown <EURCZK=> 25.981 25.971 -0.04% +1.3%
Polish zloty <EURPLN=> 4.013 4.018 +0.12% +2.27%
Hungarian forint <EURHUF=> 270.48 270.02 -0.17% -0.05%
Croatian kuna <EURHRK=> 7.307 7.32 +0.18% +0.03%
Romanian leu <EURRON=> 4.123 4.109 -0.34% +2.77%
Serbian dinar <EURRSD=> 98.22 98.627 +0.41% -2.38%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
3-yr T-bond CZ3YT=RR +5 basis points to 97bps over bmk*
7-yr T-bond CZ7YT=RR +8 basis points to +143bps over bmk*
10-yr T-bond CZ10YT=RR +1 basis points to +127bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond PL2YT=RR +6 basis points to +389bps over bmk*
5-yr T-bond PL5YT=RR +4 basis points to +328bps over bmk*
10-yr T-bond PL10YT=RR +4 basis points to +291bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR +5 basis points to +554bps over bmk*
5-yr T-bond HU5YT=RR +4 basis points to +506bps over bmk*
10-yr T-bond HU10YT=RR +4 basis points to +455bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1522 CET.
Currency percent change calculated from the daily domestic
close at 1700 GMT.
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(Reporting by Reuters bureaus, writing by Jason Hovet and
Dagmara Leszkowicz; Editing by Patrick Graham)
