CEE MARKETS-Crown pares losses after sharp fall as FX steady, stocks drop

       PRAGUE, Feb 26 (Reuters) - The Czech crown recovered some
losses against the euro on Friday, after its biggest two-day
slide since October, as a worsening pandemic situation in the
country and around central Europe kept currencies under
pressure.
    Hungary's forint edged up but was near a seven-week low hit
on Thursday. Stocks also slipped around the region, led by a
1.4% fall in Warsaw, following global peers as a rout
in bond markets spooked investors.
    Central European bond yields slightly ticked up. The
long-end end of the curve has largely copied global
developments.
    The crown had gained 0.2% at 26.16 to the euro by
1021 GMT.
    The currency rallied much of February on expectations that
the Czech central bank could begin raising interest rates later
this year, but it lost as much as 1.5% on Wednesday and Thursday
as the government signalled a stricter lockdown was coming.
    Czech Prime Minister Andrej Babis said on Thursday that
people's movement needed to be "radically" limited over at least
the next three weeks to slow one of the world's fastest spreads
of COVID-19 infections.
    His minority government was seeking an extension of
state-of-emergency powers in parliament on Friday.
    Dealers said the pandemic situation would keep the crown
weak.
    Elsewhere in central Europe, Poland was set to roll back
loosened restrictions in one region, and Hungarian Prime
Minister Viktor Orban said his country could consider tightening
some restrictions as infections were expected to rise
"drastically" in the next two weeks.
    The government this week extended a partial lockdown until
March 15.
    The forint was flat at 361.05 per euro, while the
Polish zloty also steadied at 4.517.
    "The euro/forint rate crossed the 361.50 level, the next
resistance is at 363.15, then at 365," brokerage Equilor said.

                   CEE      SNAPSHO   AT
                   MARKETS  T        1121
                                     CET

                   CURRENC
                   IES
                            Latest   Previou  Daily    Change
                                     s
                            bid      close    change   in 2021
 EURCZK  Czech     EURHUF  Hungary   0        0
 EURPLN  Polish    EURRON  Romanian  EURHRK  Croatian  EURRSD  Serbian   0        0
         Note:     calculated from            1800
         daily                                CET
         change

                   STOCKS
                            Latest   Previou  Daily    Change
                                     s
                                     close    change   in 2021
 .PX     Prague             1058.15  1067.84   -0.91%   +3.02%
                                          00
 .BUX    Budapest           44031.2  43999.4   +0.07%   +4.57%
                                  1        7
 .WIG20  Warsaw    .BETI   Buchares           10250.9  10279.8   -0.28%   +4.54%
         t                        5        2
 .SBITO  Ljubljan  .CRBEX  Zagreb    .BELEX  Belgrade  .SOFIX  Sofia     %

                   BONDS
                            Yield    Yield    Spread   Daily
                            (bid)    change   vs Bund  change
                                                       in
         Czech                                         spread
         Republic
 CZ2YT=    2-year  s
 CZ5YT=    5-year  s
 CZ10YT            s
         Poland
 PL2YT=    2-year  s
 PL5YT=    5-year  s
 PL10YT            s

                   FRA
                            3x6      6x9      9x12     3M
                                                       interba
                                                       nk
         Czech     Hungary   Poland    Note: FRA quotes are for
         ask prices
         ********************************************
         ******************


 (Reporting by Jason Hovet in Prague and Anita Komuves in
Budapest; Editing by Amy Caren Daniel)



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