CEE MARKETS-Zloty off overnight lows after Polish explosion, stocks fall
BUCHAREST, Nov 16 (Reuters) - The Polish zloty traded down around half a percent on Wednesday, but had pulled back from overnight lows with other central European currencies, after a deadly explosion in NATO member Poland its border with Ukraine on Tuesday.
The missile strike in eastern Poland that killed two people has amplifiedthe war Russia started in Ukraine will spill into countries.
The missile that killed two people in Poland was probably fired from Russia, U.S. President Joe Biden said early on Wednesday.
By 0810 GMT, the Polish zloty EURPLN= was down 0.5% on the day at 4.7075 per euro. Warsaw's blue-chip index .WIG20 was down 0.7% on the day after opening 1.5% lower.
"Today's session on the domestic financial market will be dominated by geopolitical events," Bank Millennium said, adding volatility was likely.
The bank the zloty's first reaction was relatively calm but that "further changes will depend on the reaction of NATO countries to this incident."
NATO ambassadors will hold an emergencyon Wednesday.
Elsewhere in the region, the Hungarian forint EURHUF= and Czech crown EURCZK= were flat, while the Romanian leu EURRUON= was down 0.2%.
The forint fell as far as 413.80 per euro on Tuesday, but was trading at 406.50 on Wednesday, 2% higher than lows touched after initial reports of explosions in Poland.
The explosion the Ukrainian border came as Russia unleashed a wave of missiles targeting Ukrainian energy infrastructure.
Oil supplies via the Druzhba pipeline to Europe were interrupted on Tuesday, raising among investors.
Budapest .BUX and Prague .PX were down 0.6% and 0.1% respectively, while Bucharest, which is more illiquid .BETI, rose 0.7%.
AT 0932 CET
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(Reporting by Luiza Ilie in Bucharest, Anita Komuves in Budapest, Jason Hovet in Prague and Anna Wlodarczak-Semczuk in Warsaw; Editing by Jason Hovet and Elaine Hardcastle)
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