BUCHAREST, Sept 19 (Reuters) - Central European currencies edged higher against the euro in early trade on Thursday after the U.S. Federal Reserve cut interest rates but set a higher bar for further reductions, while stocks across the region were mixed.
Monetary policy loosening by the world's largest central banks has so far eased pressure to act on policymakers in central Europe, where consumption-driven economic growth has mostly held up in the face of a euro zone slowdown and concerns over Britain's exit from the European Union.
Policy in central Europe remains in a wait-and-see mode.
By 0830 GMT, the Czech crown, Hungarian forint and Romanian leu were each 0.1% higher against the euro on the day, while the Polish zloty was flat.
"The U.S. Fed meeting yesterday produced the widely expected result bringing a 25 basis point rate cut and dovish wording," Raiffeisen Bank said in a research note.
"Still, a small relief rally in CEE local bond markets may be possible in the coming days due to relatively cautious positioning of the markets ahead of the Fed meeting."
Bond yields were mixed on Thursday.
Polish industrial output fell by 1.3% in August while analysts had expected it to rise by 1.7%.
"The data is clearly weaker than expected," said Piotr Bielski, Santander Bank Polska head of economic analysis.
"I think that one can suspect that this slowdown in Western Europe, to which we have been resistant for a long time, has a mark on Polish industry. This is a signal that we are not completely immune to the global slowdown."
Warsaw's blue chip index was down 0.6% on the day, while Hungary's fell 0.5%. In Prague and Bucharest, stocks were up 0.4% and 0.1%, respectively.
CEE SNAPSHO AT
MARKETS T 1027
CET
CURRENC
IES
Latest Previou Daily Change
s
bid close change in 2019
Czech <EURCZK= 25.8750 25.9040 +0.11% -0.65%crown >
Hungary <EURHUF= 332.730 332.940 +0.06% -3.50% forint > 0 0
Polish <EURPLN= 4.3431 4.3422 -0.02% -1.23%
zloty > Romanian <EURRON= 4.7395 4.7418 +0.05% -1.80% leu > Croatian <EURHRK= 7.3980 7.3975 -0.01% +0.16%
kuna >
Serbian <EURRSD= 117.500 117.615 +0.10% +0.68%
dinar > 0 0 Note: calculated from 1800 daily CET change
Latest Previou Daily Change
s
close change in 2019
Prague 1053.46 1050.02 +0.33% +6.78%
00
Budapest 40726.1 40930.2 -0.50% +4.06%
3 4
Warsaw 2190.50 2205.02 -0.66% -3.78%
Bucharest 9323.76 9313.44 +0.11% +26.28
%
Ljubljana <.SBITOP 857.74 859.27 -0.18% +6.65%
>
Zagreb 1896.22 1893.77 +0.13% +8.43%
Belgrade <.BELEX1 760.59 759.43 +0.15% -0.14%
5>
Sofia 580.60 580.65 -0.01% -2.33%
BONDS
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic R> s
5-year <CZ5YT=R 1.1020 -0.0840 +183bp -10bps
R> s
10-year <CZ10YT= 1.3930 -0.0170 +189bp -4bps
RR> s
Poland
2-year <PL2YT=R 1.4960 0.0160 +220bp +1bps
R> s5-year <PL5YT=R 1.8400 0.0190 +257bp +1bps R> s
10-year <PL10YT= 2.1130 0.0430 +261bp +3bps RR> s FORWARD RATE AGREEME NT 3x6 6x9 9x12 3M interba nk Czech Rep 2.16 2.09 1.99 2.14 <PRIBOR= > Hungary 0.27 0.33 0.37 0.21 Poland 1.73 1.73 1.70 1.72
quotes prices ********************************************** **************** (Reporting by Luiza Ilie in Bucharest, Jason Hovet in Prague and Anna Koper in Warsaw; Editing by Shri Navaratnam)