BUCHAREST, Aug 20 (Reuters) - Central European stocks tracked global markets lower on Thursday after Federal Reserve minutes highlighted doubts about the U.S. economic recovery, while the Romanian leu shrugged off rising fiscal risks. By 0845 GMT, Prague's bluechip index was 1.2% lower on the day and Warsaw's down 0.8%. "The morning starts in a risk-off mood after mixed impressions from FED meeting minutes," Komercni Banka fixed income trader Marek Lesko said in a daily note. In Romania, lawmakers rejected a government decree on Wednesday that would have raised child benefits by less than originally planned, piling pressure on the cabinet as it grapples with the economic fallout from the COVID-19 pandemic. Even before the pandemic, Romania was struggling with a widening budget shortfall, eroded by years of political instability and fiscal largesse during a previous Social Democrat government. Three major credit rating agencies have Romania on their lowest investment grade with negative outlooks. The current centrist minority government is trying to lower already approved hikes in child benefits and state pensions via emergency decrees, but parliament could ultimately change course. The opposition Social Democrats have also filed a no confidence vote against the cabinet. The Romanian leu was flat against the euro at 4.8390 on Thursday. "So far, the leu has been reasonably unaffected by the political upheavals, but we urge caution," Commerzbank said. "The risk of a rating downgrade continues and the question is when the underlying risks will be more heavily reflected in the leu exchange rates." Elsewhere in the region, the Czech crown edged 0.1% lower against the euro, while the Polish zloty rose 0.2%. Hungarian markets are closed on Thursday and Friday for a national holiday. Polish industrial output rose 1.1% year-on-year in July, above forecast. The Polish government will announce an amended 2020 budget later on Thursday. Before the pandemic, Poland had planned to have its first balanced budget in three decades in 2020. CEE SNAPSHO AT MARKETS T 1100 CET CURRENC IES Latest Previou Daily Change s bid close change in 2020 Czech <EURCZK= 26.0770 26.0700 -0.03% -2.47% crown > Hungary <EURHUF= 351.050 348.410 -0.75% -5.67% forint > 0 0 Polish <EURPLN= 4.4010 4.4060 +0.11% -3.29% zloty > Romanian <EURRON= 4.8390 4.8425 +0.07% -1.05% leu > Croatian <EURHRK= 7.5300 7.5305 +0.01% -1.12% kuna > Serbian <EURRSD= 117.500 117.600 +0.09% +0.06% dinar > 0 0 Note: calculated from 1800 daily CET change Latest Previou Daily Change s close change in 2020 Prague 887.66 897.450 -1.09% -20.43% 0 Budapest 36043.5 36043.5 +0.00% -21.79% 6 6 Warsaw 1817.46 1833.22 -0.86% -15.47% Buchares 8691.35 8687.24 +0.05% -12.89% t Ljubljan <.SBITOP 860.21 861.69 -0.17% -7.09% a > Zagreb 1591.35 1593.75 -0.15% -21.12% Belgrade <.BELEX1 668.81 670.04 -0.18% -16.57% 5> Sofia 438.54 434.46 +0.94% -22.81% Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year <CZ2YT=R 0.1250 -0.0170 +080bp -1bps R> s 5-year <CZ5YT=R 0.6330 -0.0810 +131bp -8bps R> s <CZ10YT= 0.9810 -0.0250 +146bp -2bps 10-year RR> s Poland 2-year <PL2YT=R 0.1660 -0.0230 +084bp -2bps R> s 5-year <PL5YT=R 0.7550 -0.0260 +143bp -2bps R> s <PL10YT= 1.3360 -0.0310 +182bp -2bps 10-year RR> s FORWARD 3x6 6x9 9x12 3M interba nk Czech 0.36 0.36 0.41 0.34 Rep <PRIBOR= > Hungary 0.77 0.80 0.87 0.61 Poland 0.22 0.23 0.25 0.23 Note: are for ask FRA prices quotes ********************************************* ***************** (Reporting by Luiza Ilie in Bucharest, Robert Muller in Prague and Alan Charlish in Warsaw; Editing by Mark Potter)
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