INSTANT VIEW 3-Czech Oct trade surplus beats fcast by a tad

    PRAGUE, Dec 6 (Reuters) - The Czech foreign trade balance 
posted a 4.35 billion crown ($209.2 million) surplus in October 
on rising car exports, a touch above market expectations and 
about 1.6 billion wider compared with the same month last year. 
 
KEY POINTS: 
(in bln CZK)           Oct        Sept          Oct fcast 
 balance               4.35     7.97 (7.46)      4.0 
(nominal y/y change in pct) 
 exports              19.8     11.4  (9.4)       n/a 
 imports              19.2     10.1  (8.4)       n/a 
(brackets denote previously reported data) 
 
 (For full table of trade data, click on........[ID:nPRA001066]) 
 
- According to seasonally-adjusted preliminary data, exports 
drop 0.1 percent in October from September while imports rise 
2.8 percent month-on-month. 
- The monthly volumes of both exports and imports are the 
highest on record, says the statistical office. 
- The year-on-year rise in the monthly trade surplus from 2.76 
billion crowns in October 2005 comes on the back of a 2.4 
billion increase in machinery and transport equipment surplus, 
and a 1.7 billion drop in the deficit trade with mineral fuels. 
- The gap in crude oil and natural gas trade narrowed for the 
first time since November 2004, reflecting a fall in the 
country's import bill after an oil price drop globally. 
- In euro terms, exports rise by 25.7 percent and imports by 
25.0 percent year-on-year in October, outpacing the growth rates 
in local currency terms because of a firming in the crown. 
 
COMMENTARY: 
    DAVID MAREK, CHIEF ECONOMIST, PATRIA FINANCE, PRAGUE 
    "The data brought basically no surprise, therefore it should 
give no impulse to the crown's exchange rate. 
    "The full-year trade surplus is heading towards 45 billion 
crowns after last year's 38.6 billion." 
     
    ALES MICHL, ANALYST, RAIFFEISENBANK, PRAGUE 
    "Exports are successfully battling the strong crown ... For 
the full-year, we should expect a result slightly above last 
year's 38.6 billion crowns. 
    "Foreign trade is one of the reasons why we have -- for five 
months already -- been sticking to the prediction of a strong 
crown at 27.80 against the euro at the end of the year." 
 
MARKET REACTION: 
- Crown at 28.025 per euro <EURCZK=> by 0817 GMT, barely changed 
on the news. 
 
BACKGROUND: 
- Market expectations before release             [ID:nL30680319] 
- Slovak Sept trade figures                      [ID:nL10867448] 
- Polish trade in Sept                           [ID:nL14787763] 
- Hungary's Sept trade data                      [ID:nBUD001775] 
- Report on last Czech c.bank rate decision       [ID:nL3091748] 
                                 [ID:nPRA001058] [ID:nPRA001059] 
 
- For further details on October foreign trade and other past 
data, Reuters 3000 Xtra users can click on the Czech Statistical 
Bureau's website: 
    http://www.czso.cz/eng/csu.nsf/kalendar/2004-vzo 
 
- For LIVE Czech economic data releases, click on       <ECONCZ> 
- Instant Views on other Czech data click on        [CZ/INSTANT] 
- Overview of Czech macroeconomic indicators            [CZ/ECI] 
 
- Key data releases in central Europe    [CEE-CONVERGENCE-WATCH] 
- For Czech money markets data click on                <CZKVIEW> 
- Czech money guide                                      <CZK/1> 
- Czech benchmark state bond prices                   <0#CZBMK=> 
- Czech forward money market rates                      <CZKFRA> 
 
 ((Writing by Marek Petrus; Editing by Alan Crosby; 
prague.newsroom@reuters.com; Reuters Messaging: 
marek.petrus.reuters.com@reuters.net; +420 224 190 477)) 
 ($1=21.03 Czech Crown) 
  Keywords: CZECH TRADE/