PRAGUE, Nov 30 (Reuters) - The zloty inched up against the
euro on Monday on the back of stronger-than-expected Polish
growth in the third quarter, as central European markets
steadied from last week's losses.
Poland's economy, central Europe's largest and the only to
avoid recession this year, expanded 1.7 percent in the third
quarter, beating analysts' expectations for 1.3 percent growth
and boding well for the region's recovery. []
Earlier in the day, data showed Czech industry posted its
slowest drop in a year at 7.3 percent, less than analyst
expectations. []
The zloty <EURPLN=> edged up to 4.14 to the euro by xx GMT,
paring some early gains that came after the data. The Czech
crown <EURCZK=>, after outgaining peers in a flight to safer
assets last week, was off 0.2 percent at 26.1 per euro.
"The third quarter data looks very optimistic for the
financial markets," said Jaroslaw Janecki, chief economist at
Societe Generale in Warsaw. "After this data release we can
safely say that 2009 economic growth will for sure exceed the 1
percent mark."
Markets in Asia and Europe steadied but stayed cautious
after tumbling to end last week as worries that a Dubai debt
default could spell trouble for banks and markets beyond the
emirate have sent investors to safer ground. []
Emerging European assets were swept up in worry despite
analysts saying there was no direct link for the region,
although the concern highlighted debt problems that countries
like Ukraine or Hungary still face.
The Hungarian Parliament is widely expected to approve the
2010 budget in a final vote on Monday as the country aims to cut
the deficit to 3.8 percent of gross domestic product, in line
with its IMF-led aid package obligations.
The opposition Fidesz party, seen as the victor of next
year's election has said the deficit could actually be twice
that amount. []
Hungary's forint <EURHUF=> added 0.2 percent to 272.04 to
the euro on Monday, and Romania's leu <EURRON=> -- with markets
eyeing the run-off presidential vote next weekend -- was down a
touch at 4.273 to the euro.
Stock markets also recover, with Warsaw <> rising
around 1 percent along with Budapest <>.
"After the heavy sell-off in emerging markets currencies
last week we can expect some positions to be put on again while
investors have had time to digest the Dubai news during the
weekend," analysts at SEB bank said in a daily note.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2009
Czech crown <EURCZK=> 26.097 26.042 -0.21% +2.51%
Polish zloty <EURPLN=> 4.14 4.141 +0.02% -0.6%
Hungarian forint <EURHUF=> 272.04 272.57 +0.19% -3.12%
Croatian kuna <EURHRK=> 7.31 7.305 -0.07% +0.75%
Romanian leu <EURRON=> 4.273 4.271 -0.05% -6.05%
Serbian dinar <EURRSD=> 94.65 94.78 +0.14% -5.46%
All data taken from Reuters at 1030 CET.
Currency percent change calculated from the daily domestic
close at 1700 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, editing
by Victoria Main)
((prague.newsroom@thomsonreuters.com; Reuters Messaging:
jason.hovet.reuters.com@reuters.net; +420-224 190 476))
