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CEE MARKETS-Crown falls as Czech inflation slows, KGHM leads stocks decline

* Trade war fears, Czech CPI drop weigh on currencies * Copper producer KGHM leads Warsaw stocks fall on trade war * Polish, Romanian central banks seen holding fire * Q1 GDP growth data seen showing slowdown except for Hungary (Adds price changes, new analyst comments, copper producer KGHM stocks fall) By Sandor Peto BUDAPEST, May 13 (Reuters) - The crown touched 6-week lows against the euro on Monday as Czech inflation unexpectedly slowed, while the U.S.-China trade war helped drive down stocks and government bond yields in Central Europe.

April Czech annual inflation dropped to 2.8%.

The crown traded at 25.77 against the euro at 1304 GMT, down 0.1 percent, even though it was off 25.79 reached after the inflation figures.

The Czech central bank (CNB) increased its interest rates for the eighth time in two years early this month after inflation rose well above its 2% target.

Monday's CPI figures add to expectations that the bank is likely to pause its rate hikes for the rest of 2019 but could move either way later.

If Britain quits the European Union without a deal or the euro zone economy slows, the next move may be a cut, Erste group analyst Jiri Polansky said in a note, adding that improving euro zone economic data could lead to a hike.

Goldman Sachs analysts said a hike remained the likely next move. "We continue to think that implied rates for 2020 are too low," they said in a note.

The zloty also eased. The relatively volatile forint reversed its early fall as the euro also strengthened against the greenback.

Warsaw led a decline in regional equity indexes.

Its almost 1.5 percent fall was mainly driven by copper producer KGHM, which shed 3.8 percent.

The head of its Chilean peer Antofagasta said the U.S.-China trade war had slashed the price of copper, which registered its fourth consecutive weekly fall last week.

The trade conflict between the world's two biggest economies has cut risk appetite in global markets, weighing on stock prices and inflation and interest rate expectations.

Luxury car makers Daimler AG and BMW are putting their investments in Hungary on hold as the industry struggles with lower demand and the threat of higher U.S. auto tariffs on car imports from Europe, German media reported.

U.S. President Donald Trump was due to meet visiting Hungarian Prime Minister Viktor Orban later on Monday.

First-quarter economic output figures due from the region's main economies later this week are likely to show growth still outpaced the euro zone though at a slower rate except for Hungary, where analysts project steady 5.1% annual growth.

The Polish and Romanian central banks are expected to keep their interest rates on hold on Wednesday.

The leu bucked the weaker regional trend, trading at 4.761 versus the euro, after Romanian figures showed a surprise rise in annual inflation to 4.1% in April, the region's highest level.

CEE SNAPSHOT AT MARKETS 1504 CET CURRENCI ES Latest Previous Daily Change bid close change in 2019 Czech Hungary Polish Romanian Croatian Serbian Note: calculated from 1800 CET daily change Latest Previous Daily Change close change in 2019 Prague 1043.02 1049.640 -0.63% +5.72% 0 Budapest 40625.91 41068.21 -1.08% +3.80% Warsaw 2160.27 2191.91 -1.44% -5.11% Bucharest 8194.95 8304.58 -1.32% +10.99% Ljubljana <.SBITOP 864.52 868.67 -0.48% +7.49% > Zagreb 1838.18 1840.78 -0.14% +5.11% Belgrade <.BELEX1 732.55 731.71 +0.11% -3.83% 5> Sofia 569.33 571.54 -0.39% -4.23% BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year 5-year 10-year Poland 2-year 5-year 10-year FORWARD RATE AGREEMEN T 3x6 6x9 9x12 3M interban k Czech Rep 2.24 2.25 2.23 2.20 (PRIBOR= ) Hungary 0.34 0.49 0.65 0.16 Poland 1.74 1.75 1.77 1.72 Note: FRA are for ask prices quotes ************************************************* ************* (Additional reporting by Radu Marinas in Bucharest and Jason Hovet in Prague Editing by Emelia Sithole-Matarise/Mark Heinrich)