CEE MARKETS-Forint leads FX lower; CEZ shares fall over 3%

PRAGUE, Jan 19 (Reuters) - Hungary's forint led losses among central European currencies on Monday, as investors reduced risk after U.S. President Donald Trump's threatened extra tariffs on goods imported from eight European nations until the U.S. was allowed to buy Greenland.

Markets turned more risk-averse amid the United States' aim to take over Greenland, a Danish territory, with tariff disputes raising worries over trade.

"I thought that Davos and comments from the central bankers would be the number one topic, but I think that we are back into geopolitics and Greenland," a Warsaw-based trader said.

A Budapest trader said statements on Greenland could change quickly, leaving uncertainty hanging in the markets. U.S. markets were also closed on Monday for a public holiday.

"Until we know what is going to happen in Greenland, there is not much investors can trade on," the trader said.

CURRENCIES CONTINUE RETREAT FROM LAST YEAR'S HIGHS

By 1128 GMT, the forint EURHUF= fell 0.3% to 386.20 to the euro, after rising for four consecutive sessions. The Polish zloty EURPLN= and the Czech crown EURCZK= eased less than 0.1%.

Currencies have fallen in the past month from multi-year or multi-month highs. Besides trade tensions, markets are also watching for central European policymakers' comments on interest rates, which have been on hold in most countries except Poland.

In Romania, the central bank meets on Monday, and a majority of analysts expect unchanged rates during the first half of the year.

Poland still has some room for monetary easing, and the next decision to cut interest rates could come as early as February or March, central bank governor Adam Glapinski said last week after decision-makers paused their loosening.

In Prague, the state-owned utility CEZ CEZP.PR shares fell more than 3%, on course for their biggest one-day drop since June 2024.

The fall comes after Industry Minister Karel Havlicek said that the state could buy out minority shareholders in the coming months. The process could take up to two years, he said, like the new government had flagged.

J&T Banka analyst Milan Lavicka said some investors may have hoped for a faster move by the government.