CEE MARKETS-Currencies edge down as PMI data signal modest recovery

By Anita Komuves BUDAPEST, Aug 3 (Reuters) - Most Central European stock indices firmed while currencies eased on Monday as fresh PMI data from the region indicated a modest recovery from the effects of coronavirus-induced lockdown measures. Polish manufacturing recovered in July, pushing the IHS Markit PMI above 50 for the first time since October 2018. Hungary posted a more modest improvement and the Czech Republic did not return to growth, suggesting the region still faces challenges. Hungary's seasonally-adjusted PMI rose to 50.8 in July. However, the reading was still below the long-term July average of 52.8. Czech manufacturing activity shrank at a much slower rate in July - albeit slightly faster than economists expected - while output grew. The headline PMI reading rose to 47.0 last month from 44.9 in June. Most currencies in the region edged down on Monday. CEE currencies were hammered by the COVID-19 pandemic's economic effects in the spring but gained back a significant part of their strength after lockdowns were lifted. The Czech crown eased 0.12% and was trading at 26.295 to the euro by 0851 GMT. The Polish zloty was down 0.09% at 4.4165 per euro. The Romanian leu was stable. The Hungarian forint slid 0.23% to 345.210 versus the common currency. "There is very little liquidity," an FX trader in Budapest said. "The euro-forint exchange rate is more or less stable today. It is only a little moved, without a firm direction." The Hungarian forint strengthened near its 200-day moving average of 342.9 on Friday and could weaken as far as 350 to the euro according to the technical picture, Erste Bank said in a note. Most stock indices firmed in the region, with Prague's assets gaining 0.7% and Warsaw firming 0.35%. Bucharest's blue-chip index was up 0.11%. Budapest's equities were down 0.5%. CEE SNAPSHO AT MARKETS T 1051 CET CURRENC IES Latest Previous Daily Change bid close change in 2020 EURCZK= Czech <EURCZK= 26.2950 26.2630 -0.12% -3.28% crown > EURHUF= Hungary <EURHUF= 344.770 344.4000 -0.11% -3.95% forint > 0 EURPLN= Polish <EURPLN= 4.4165 4.4125 -0.09% -3.63% zloty > EURRON= Romanian <EURRON= 4.8355 4.8345 -0.02% -0.98% leu > EURHRK= Croatian <EURHRK= 7.4730 7.4815 +0.11 -0.37% kuna > % EURRSD= Serbian <EURRSD= 117.560 117.6200 +0.05 +0.01 dinar > 0 % % Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2020 .PX Prague 888.87 882.6700 +0.70 -20.33 % % .BUX Budapest 34510.7 34691.74 -0.52% -25.11 7 % .WIG20 Warsaw 1773.75 1767.54 +0.35 -17.50 % % .BETI Bucharest 8387.46 8377.89 +0.11 -15.93 % % .SBITOP Ljubljana <.SBITOP 843.75 844.30 -0.07% -8.87% > .CRBEX Zagreb 1575.81 1573.77 +0.13 -21.89 % % .BELEX1 Belgrade <.BELEX1 665.08 667.88 -0.42% -17.04 5 5> % .SOFIX Sofia 436.71 436.45 +0.06 -23.13 % % Yield Yield Spread Daily (bid) change vs change Bund in Czech spread Republic CZ2YT=R 2-year <CZ2YT=R 0.0980 0.0830 +081b +8bps R R> ps CZ5YT=R 5-year <CZ5YT=R 0.3780 -0.0510 +109b -7bps R R> ps CZ10YT= 10-year <CZ10YT= 0.8320 0.0090 +136b +0bps RR RR> ps Poland PL2YT=R 2-year <PL2YT=R 0.1270 0.0100 +083b +0bps R R> ps PL5YT=R 5-year <PL5YT=R 0.6710 -0.0070 +139b -2bps R R> ps PL10YT= 10-year <PL10YT= 1.2840 0.0010 +181b -1bps RR RR> ps FORWARD 3x6 6x9 9x12 3M interb ank Czech Rep 0.33 0.34 0.36 0.34 <PRIBOR= > Hungary 0.60 0.58 0.57 0.60 Poland 0.19 0.19 0.19 0.23 Note: FRA are for ask quotes prices ********************************************** **************** (Reporting by Anita Komuves; Edited by Krishna Chandra Eluri)