CEE MARKETS-Hungarian forint firms as concerns over EU funds ease

By Anita Komuves BUDAPEST, Nov 28 (Reuters) - The Hungarian forint firmed slightly on Monday, adding to its gains from the previous session, as investors' concerns over negotiations between Hungary and the European Union over funds subsided. The forint was up 0.21% and trading at 408.10 versus the euro. Last week, the Hungarian currency was on a rollercoaster and fell as much as 415 as the unit was weighed down by media reports that the European Commission was going to withhold funding for Budapest due to concerns over the rule of law. "It seems like the market has calmed down a bit after negative news about EU funds last week," an FX trader in Budapest said. A deal with the European Union on funds is required for a significant strengthening of the forint, traders and analysts have said. The currency is central Europe's worst performer so far this year and has shed almost 10%. The European Commission is likely to approve Hungary's post-pandemic recovery plan this week to keep open the possibility of EU disbursements later, but hold back any payouts until Budapest fulfils all agreed conditions, sources at the EU executive have said. nL8N32K30C Long-term Hungarian bond yields were unmoved on Monday, a fixed-income trader said. The yield on the benchmark 10-year bond was about 8.05%. In Hungary, data showed on Monday that business sentiment continued to worsen in November while consumer confidence improved slightly, with both measures remaining near dismal levels last seen during the pandemic. Elsewhere, the Polish zloty was up 0.21% and trading at 4.6800 versus the common currency. The zloty would continue to stabilize around the 4.7 level, Alior Bank wrote in a note, as it was "still benefiting from relatively favorable moods in the global markets." Investors also eyed a flash inflation reading for November and third-quarter GDP estimates were due on Wednesday. Stocks in the region were mixed, with Warsaw sliding 0.92%, while Budapest added 0.25%. CEE SNAPSHOT AT MARKETS 1055 CET CURRENCIES Latest Previous Daily Change bid close change in 2022 EURCZK Czech 24.3450 24.3540 +0.04% +2.16 = crown % EURHUF Hungary 408.1000 408.9500 +0.21% -9.49% = forint EURPLN Polish 4.6800 4.6900 +0.21% -1.90% = zloty EURHRK Croatia 7.5480 7.5465 -0.02% -0.40% = n kuna EURRSD Serbian 117.2600 117.3500 +0.08% +0.27 = dinar % Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2022 .PX Prague 1242.36 1243.260 -0.07% 0 .BUX Budapes 45827.66 45715.33 +0.25% -9.65% t .WIG20 Warsaw 1739.47 1755.69 -0.92% -23.27 % .BETI Buchare 11550.38 11569.94 -0.17% -11.57 st % .SBITO Ljublja 1064.79 1069.62 -0.45% -15.19 P na % .CRBEX Zagreb 1911.85 1914.43 -0.13% -8.06% .BELEX Belgrad <.BELEX15 816.51 816.51 +0.00% -0.52% 15 e > .SOFIX Sofia 594.68 595.75 -0.18% -6.45% Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republi c CZ2YT= s CZ5YT= s CZ10YT s Poland PL2YT= s PL5YT= s PL10YT s FORWARD 3x6 6x9 9x12 3M interb ank Czech < 7.08 6.76 6.39 7.25 Rep PRIBOR=> Hungary < 13.60 12.22 11.47 15.32 BUBOR=> Poland < 7.36 7.36 7.09 7.31 WIBOR=> Note: are for ask prices FRA quotes ************************************************* ************* (Additional reporting by Pawel Florkiewicz in Warsaw; Editing by Sherry Jacob-Phillips)