CEE MARKETS-Kuna joins firming despite Croatian government crisis
* Kuna rebounds from 3-month-low on seasonal tourism impact * Croatian government splits over Agrokor crisis * French politics supports FX despite Macron Poland warning * Czech crown rebounds again from levels beyond 27 vs euro By Sandor Peto and Igor Ilic BUDAPEST/ZAGREB, April 28 Croatia's kuna joined a firming of Central European peers on Friday despite a split in the country's ruling coalition, helped by seasonal factors and more risk appetite after last Sunday's French presidential vote. Regional assets rose this week after centrist Emmanuel Macron won the first-round vote, diminishing the risk of far-right or far-left government in the core European Union member. In Zagreb, the kuna hit a 3-month low to the euro on Thursday, after Prime Minister Andrej Plenkovic fired ministers from his junior coalition partner. He will need to patch together a new majority or call an early election. It rebounded on Friday, trading at 7.48, up 0.1 percent. The coalition split stems from differences over the handling of a financial crisis of retail and food group Agrokor, Croatia's biggest private firm. Analysts said a seasonal pick-up in revenues from tourism, which tends to lift the kuna around the middle of the year, still supported the currency. "I expect certain easing pressures to persist in the coming days or weeks due to the Agrokor crisis and political uncertainties, but as the tourist season gets into swing from June, I see again appreciation pressures setting the pace," said a dealer at a major local bank. Increased demand for euros as the corporate sector pays dividends is negative, but a pick-up in the inflow of EU funds could help the kuna, Addiko bank said in a note. The zloty and the forint firmed 0.1 percent per euro. The Polish unit touched a one-month high at 4.2133, a hairbreadth from 18-month highs beyond 4.21. Macron, who has good chances to become French president, pledged a hard-line approach to Poland and Hungary in defence of democratic values late on Thursday. But investors shrug off that tension for now, focusing on a fall in risks to European integration with Macron in the lead. Polish April inflation data due at 1200 GMT are seen showing 2 percent annual rise, a flat rate from March. "CPI data will not have a significant impact on zloty, given a prevailing conviction ... that the MPC (central bank) will remain dovish in its stance," Millennium bank analysts said in a note. The crown firmed 0.4 percent to 26.915 per euro, rebounding sharply from levels past 27, which it reached on Thursday for the second time since the central bank three weeks ago removed a cap which had kept it weaker than 27 for years. CEE SNAPS AT 1046 MARKETS HOT CET CURRENCIES Lates Previ Daily Chang t ous e bid close chang in e 2017 Czech crown 26.91 27.02 +0.4 0.34% 50 45 1% Hungary 311.5 311.8 +0.1 -0.88 forint 700 750 0% % Polish 4.218 4.223 +0.1 4.41% zloty 0 3 2% Romanian 4.534 4.533 -0.01 0.02% leu 0 7 % Croatian 7.480 7.483 +0.0 1.00% kuna 0 8 5% Serbian 123.0 123.2 +0.1 0.28% dinar 000 000 6% Note: daily calculate previ close 1800 change d from ous at CET STOCK S Lates Previ Daily Chang t ous e close chang in e 2017 Prague 1003. 1002. +0.1 +8.8 43 12 3% 8% Budapest 32959 32959 +0.0 +2.9 .04 .62 0% 9% Warsaw 2390. 2382. +0.3 +22. 10 78 1% 70% Bucharest 8202. 8184. +0.2 +15. 86 77 2% 78% Ljubljana 780.9 788.2 -0.92 +8.8 9 5 % 4% Zagreb 1899. 1888. +0.5 -4.78 42 86 6% % Belgrade 6 4 % 9% Sofia 654.3 649.4 +0.7 +11. 9 7 6% 59% BONDS Yield Yield Sprea Daily d (bid) chang vs chang e Bund e in Czech sprea Republic d 2-year 8 bps 5-year 4 bps 10-year 6 bps s Poland 2-year bps s 5-year bps s 10-year bps s FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M inter bank Czech Rep < 0.31 0.37 0.46 0 PRIBOR=> Hungary < 0.22 0.255 0.39 0.16 BUBOR=> Poland < 1.753 1.779 1.829 1.73 WIBOR=> Note: FRA are for quotes ask prices ************************************************** ************ (Additional reporting by Jason Hovet in Prague and Marcin Goettig and Bartosz Chmielewski in Warsaw; Editing by Tom Heneghan)