* Forint helped by better manufacturing outlook
* Markets quiet with London closed
* Czech, Romanian rate meetings watched this week
(Adds bond prices)
PRAGUE, May 2 (Reuters) - The Hungarian forint and Czech
crown edged up in quiet trade on Monday while emerging European
stocks were mixed following news al Qaeda leader Osama bin Laden
was killed.
The White House announcement that U.S. troops had killed bin
Laden gave a quick boost to world equity markets, but also
lifted the dollar and cut appetite for central Europe's
currencies, limiting their gains.
The Prague <> and Budapest bourses <> added up to
half a percent, leading equity markets in the region where
trading was thin due to a London market holiday.
The forint <EURHUF=> added 0.1 percent, helped by a rise in
the Hungarian Purchasing Managers' Index (PMI) that pointed to a
stronger economic outlook.
The crown <EURCZK=> was up 0.1 percent at 24.169 to the euro
by 0805 GMT, rebounding from a retreat at the end of last week.
The Polish zloty <EURPLN=> dipped 0.15 percent from Friday
and Romania's leu <EURRON=> slipped 0.2 percent to 4.083.
Currencies jumped to multi-month highs last month thanks to
a weakening dollar that sent investors to higher-yielding
assets, including in central Europe. []
Despite the dollar's rise on Monday, analysts see little
relief ahead for the currency as the U.S. Federal Reserve
persists with its ultra-loose monetary policy, keeping emerging
market assets and their economies' higher growth rates
attractive.
"It's not really a strong dollar rebound (versus the euro),"
Commerzbank FX strategist Lutz Karpowitz said. "We are still
sticking to the same stories in the FX markets."
RATE MEETINGS COMING UP
Investors will be watching rate-setting meetings in Romania
and the Czech Republic this week to look for clues on the rate
outlook following hikes in Poland, Hungary and the euro zone,
Most analysts expect Romania's central bank to keep its key
rate at 6.25 percent through this year and resume the easing
cycle that has helped it through recession next year.
[]
The Czechs are also expected to hold fire on rates, which
are the lowest in the region and below those of the euro zone.
Markets are betting on the start of interest rate rises in the
coming months, but the timing has become less certain.
[]
Inflation in the Czech Republic has remained tame and some
policymakers still favour no change in policy for now.
Analysts at CSOB bank said this could keep the crown under
pressure now that other banks are looking to tighten.
"We are expecting the differing rhetoric of the Czech and
European Central Bank will continue, which could play against
the crown," CSOB said.
Czech bonds were a tad firmer on the short-end of the curve.
Polish and Hungarian bonds were unchanged from Friday.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2011
Czech crown <EURCZK=> 24.169 24.203 +0.14% +3.44%
Polish zloty <EURPLN=> 3.931 3.925 -0.15% +0.69%
Hungarian forint <EURHUF=> 263.7 264.01 +0.12% +5.42%
Croatian kuna <EURHRK=> 7.366 7.362 -0.05% +0.19%
Romanian leu <EURRON=> 4.084 4.075 -0.22% +3.65%
Serbian dinar <EURRSD=> 99.21 98.93 -0.28% +6.77%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond CZ2YT=RR -5 basis points to -23bps over bmk*
7-yr T-bond CZ7YT=RR -4 basis points to +39bps over bmk*
10-yr T-bond CZ9YT=RR -3 basis points to +67bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond PL2YT=RR -5 basis points to +311bps over bmk*
5-yr T-bond PL5YT=RR -5 basis points to +309bps over bmk*
10-yr T-bond PL10YT=RR -4 basis points to +284bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR -3 basis points to +441bps over bmk*
5-yr T-bond HU5YT=RR -5 basis points to +413bps over bmk*
10-yr T-bond HU10YT=RR -2 basis points to +375bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1149 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 []
Spot FX rates
Eastern Europe spot FX <EEFX=> Middle East spot FX <MEFX=>
Asia spot FX <ASIAFX=> Latin America spot FX <LATAMFX=>
Other news and reports
World central bank news [] Economic Data Guide <ECONGUIDE>
Official rates [] Emerging Diary []
Top events [] Diaries [] Diaries Index []
(Reporting by Reuters bureaus, writing by Jason Hovet;
Editing by John Stonestreet/Ruth Pitchford)
