CEE MARKETS-Crown, forint stuck at multi-month lows

       PRAGUE, Oct 25 (Reuters) - The Czech crown hit a near
three-month low on Monday amid  worries over weaker economic
growth, while the Hungarian forint tested a seven-month low,
continuing to cool after the central bank slowed the pace of
rate hikes.
    Central Europe's currencies have been on the back foot in
October, feeling pressure from a stronger U.S. dollar cutting
into risk appetite and also from local factors, which include a
renewed rise in COVID-19 cases in the region as vaccination
rates remain below European Union averages.
    Currencies have struggled even with central banks all
turning to tighter monetary policy to quell an inflation spike
and investors pricing in sharp hikes in the next few months.
    The forint, which traded a tad lower at 364.8 to
the euro at 1012 GMT, has lost 1.3% since last week when the
Hungarian central bank lifted its base rate by 15 basis points,
disappointing some investors who were betting on a faster pace.
    "Global investor sentiment needs to brighten up before the
forint can strengthen. This is not specific to the forint at the
moment," an FX trader in Budapest said, adding the 365 level
would provide resistance to further losses.
    "We just need some positive news, either from China, where
the Evergrande story is still concerning, or some better
coronavirus data."
    With global markets keeping track of indebted developer
China Evergrande Group, investors in central Europe are also
watching a spike in COVID-19 cases in central Europe, with the
Czech Republic tightening restrictions on Monday and looking to
avoid costly lockdown measures.
    The Czech car sector is also weighing on the crown as the
global chip shortage hits production. A trader said crowded
short euro positions are being reduced, adding to the weakening.
    The crown lost 0.1% to 25.70 per euro on Monday
and is down 1.2% since Czech carmaker Skoda Auto, part of the
Volkswagen group, started a two-week shutdown on Oct. 18 due to
a lack of chips.
    The zloty also lost 0.1%, trading on the weak side
of 4.60 to the euro. Bank Millennium said price growth would
increase pressure on the Polish central bank - which had held
off longer than its Czech and Hungarian peers in reverting to
rate hikes - to continue to tighten policy.
    "Unless anything unexpected happens, we hope that the EUR /
PLN's stay (on the weak side of) the 4.60 barrier will be only
temporary," it said.

                   CEE      SNAPSHO   AT
                   MARKETS  T        1212
                                     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:     calcula                    1800
         daily     ted                        CET
         change    from

                   STOCKS
                            Latest   Previou  Daily    Change
                                     s
                                     close    change   in 2021
 .PX     Prague             1334.64  1330.19   +0.33%   +29.94
                                          00                 %
 .BUX    Budapest           55232.8  55254.3   -0.04%   +31.17
                                  8        9                 %
 .WIG20  Warsaw    %
 .BETI   Buchares           12857.1  12812.9   +0.34%   +31.12
         t                        4        7                 %
 .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, Anita Komuves in Budapest
and Alan Charlish in Warsaw; Editing by Krishna Chandra Eluri)



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