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CEE MARKETS-Hungarian bourse shines, led by OTP's 2.3% jump to record high

By Krisztina Than

By Krisztina Than BUDAPEST, Dec 4 (Reuters) - Hungary's stock market rose over 1.6% on Wednesday morning, outperforming its Central European peers as investor sentiment in the world improved with twists and turns in the Sino-U.S. trade war keeping markets on a roller coaster ride. Central European currencies also firmed slightly, with the Polish zloty up 0.1% in line with the Hungarian forint , which also gained 0.1% to trade at around 331.30 versus the euro, distancing from its all-time low of 337.21 hit last week. "The Hungarian bourse jumped more than the others, in a positive correction," said Zoltan Varga, senior analyst at brokerage Equilor. He said this could largely be due to a 2.3% rise in OTP, Hungary's largest bank, which rose to a new record high at 14,630 forints on Wednesday. OTP has been testing new highs for a while. Budapest's market gained 1.65% on the day by 1033 GMT, followed by Warsaw's WIG 20 up 0.8% and Prague flat. Poland's central bank holds a rate meeting later on Wednesday where it is expected to keep interest rates unchanged, as the region's central banks maintain a wait and see mode with economic growth expected to slow next year. "Nobody expects the MPC to change interest rates on Wednesday, but the tone of the comment may be eased, thus supporting the domestic debt market," PKO BP said in a note. "The only fresh remark could be about the Supreme Court ruling on FX mortgages which rocked asset markets last week - the central bank may want to reassure markets that it has the tools to counter any fallout from that ruling," Commerzbank analyst Tatha Ghose said in a note ahead of the meeting. He said the forex mortgage story could be "one potential source of exchange rate volatility going forward; the other could be acceleration in core inflation." "Core inflation has accelerated in Poland in recent months and this could become a factor later, but for now the central bank's status quo is likely to prove zloty-neutral," Ghose added. The Polish zloty weakened last week after a Polish Supreme Court verdict that investors fear raises the risk that Swiss franc mortgage loans will be converted into the local currency on terms unfavourable to banks. Thousands of Poles took out Swiss franc-denominated mortgages that have become prohibitively expensive to service after the franc soared in value. The National Bank of Hungary will publish the minutes of its November rate meeting at 1300 GMT on Wednesday. The bank left interest rates unchanged last month as expected. The bank maintained its accommodative policy stance and reiterated its view that dampening European economic activity would keep a lid on domestic price pressures. The bank next meets on Dec. 17 to discuss interest rates, and fresh inflation and GDP projections that could give clues regarding policy going head. CEE SNAPSHOT AT MARKETS 1042 CET CURRENCIES Latest Previou Daily Change s bid close change in 2019 EURCZK Czech <EURCZK 25.5120 25.5300 +0.07 +0.76% = crown => % EURHUF Hungary <EURHUF 331.3300 331.730 +0.12 -3.09% = forint => 0 % EURPLN Polish <EURPLN 4.2783 4.2833 +0.12 +0.26% = zloty => % EURRON Romanian <EURRON 4.7735 4.7785 +0.10 -2.50% = leu => % EURHRK Croatian <EURHRK 7.4355 7.4385 +0.04 -0.34% = kuna => % EURRSD Serbian <EURRSD 117.3700 117.480 +0.09 +0.79% = dinar => 0 % Note: calculated from 1800 daily CET change Latest Previou Daily Change s close change in 2019 .PX Prague 1077.57 1077.64 -0.01% +9.22% 00 .BUX Budapest 43645.24 43048.2 +1.39 +11.51 5 % % .WIG20 Warsaw <.WIG20 2106.64 2089.92 +0.80 -7.47% > % .BETI Buchares 9909.16 9879.22 +0.30 +34.20 t % % .SBITO Ljubljan <.SBITO 900.49 896.93 +0.40 +11.97 P a P> % % .CRBEX Zagreb <.CRBEX 2005.91 2004.46 +0.07 +14.70 > % % .BELEX Belgrade <.BELEX 769.97 770.96 -0.13% +1.09% 15 15> .SOFIX Sofia <.SOFIX 541.31 544.24 -0.54% -8.94% > BONDS Yield Yield Spread Daily (bid) change vs change Bund in Czech spread Republic CZ2YT= 2-year <CZ2YT= 1.5490 0.0290 +219b +3bps RR RR> ps CZ5YT= 5-year <CZ5YT= 1.2560 0.0280 +187b +4bps RR RR> ps CZ10YT <CZ10YT 1.4720 -0.0020 +182b +0bps =RR 10-year =RR> ps Poland PL2YT= 2-year <PL2YT= 1.3810 -0.0200 +202b -2bps RR RR> ps PL5YT= 5-year <PL5YT= 1.7320 0.0070 +234b +2bps RR RR> ps PL10YT <PL10YT 2.0160 0.0490 +236b +5bps =RR 10-year =RR> ps FORWARD RATE AGREEME NT 3x6 6x9 9x12 3M interba nk Czech <CZKFRA 2.22 2.22 2.16 2.18 Rep ><PRIBO R=> Hungary <HUFFRA 0.25 0.27 0.32 0.17 ><BUBOR => Poland <PLNFRA 1.73 1.68 1.63 1.71 ><WIBOR => Note: are for ask prices FRA quotes (Reporting by Krisztina Than, additional reporting by Alan Charlish Editing by Giles Elgood)