U.S. Markets closed

CEE MARKETS-FX mostly up, crown settles lower near 3-month high

PRAGUE, Nov 1 (Reuters) - Central European currencies held onto gains on Friday with sluggish trade as some markets closed for holiday, although the crown weakened a touch before the region heads into a week of central bank meetings. Warsaw and Budapest markets were shut while Prague gained 0.6% on the back of a rise in bank shares. Telecoms group O2 Czech Republic was steady after estimate-beating third-quarter earnings showing a profit decline this year due to charges related to investments in 2018 had slowed. On currency markets, the Hungarian forint edged up less than 0.1% and the Polish zloty added 0.1% to 4.26 to the euro, boosted by dollar weakening. Serbia's dinar stayed strong, up 0.1%. The Czech crown nudged down less than 0.1% to bid at 25.53 to the euro, parking near a three-month high. The Czech central bank meets next week and has kept a debate on a rate hike alive as it weighs risks from an external economic slowdown, like in Germany, with solid domestic growth keeping price pressures up. This is despite an easing bias seen from the European Central Bank and U.S. Federal Reserve. Central banker comments this week, though, have pointed toward stable rates when the board meets next Thursday. "The bank at its November meeting will likely again decide whether to keep rates stable or raise them. In view of developments abroad and persisting risks, we expect the former possibility," Ceska Sporitelna analysts said. Despite talks of a potential rate hike, Raiffeisen said rate cuts next year could happen and revived bets on that would boost government bonds, to which it started a buy recommendation. Markit's Czech purchasing managers' index (PMI) showed manufacturing sentiment improved last month but was still in negative territory, adding to arguments. "PMI has stabilised after plunging to a decade-low...but activity remains weak and the breakdown offers less encouragement," Capital Economics economist Liam Peach said, adding industrial production could fall in the coming months. Other central banks in the region are in wait-and-see mode as fast growth seen in recent years starts to slow. Poland's central bank is expected to stay pat next week while Serbian policymakers may also hold fire, staying cautious after cutting borrowing costs twice this year. The Serbian dinar bid at 117.37 to the euro on Friday. The central bank bought 10 million euros to stem dinar gains on Thursday. For most of 2019, the bank has bought euros in the local interbank market to reduce appreciation pressures on the dinar that include demand for state bonds, remittances from Serbs working in the European Union and investment flows. CEE SNAPSH AT MARKETS OT 1044 CET CURREN CIES Latest Previo Daily Change us bid close change in 2019 EURCZK Czech <EURCZK 25.530 25.521 -0.03% +0.69 = crown => 0 5 % EURHUF Hungary <EURHUF 328.05 328.41 +0.11 -2.12% = forint => 00 50 % EURPLN Polish <EURPLN 4.2603 4.2615 +0.03 +0.69 = zloty => % % EURRON Romania <EURRON 4.7555 4.7538 -0.04% -2.13% = n leu => EURHRK Croatia <EURHRK 7.4530 7.4550 +0.03 -0.58% = n kuna => % EURRSD Serbian <EURRSD 117.37 117.50 +0.11 +0.79 = dinar => 00 00 % % Note: calculated from 1800 daily CET change Latest Previo Daily Change us close change in 2019 .PX Prague 1058.0 1050.8 +0.68 +7.24 2 700 % % .BUX Budapes 42159. 42159. +0.00 +7.72 t 58 58 % % .WIG20 Warsaw <.WIG20 2194.1 2194.1 +0.00 -3.63% > 0 0 % .BETI Buchare 9597.5 9518.8 +0.83 +29.9 st 5 9 % 8% .SBITO Ljublja <.SBITO 853.56 853.56 +0.00 +6.13 P na P> % % .CRBEX Zagreb <.CRBEX 1991.9 1991.9 +0.00 +13.9 > 8 8 % 0% .BELEX Belgrad <.BELEX 750.48 749.88 +0.08 -1.47% 15 e 15> % .SOFIX Sofia <.SOFIX 555.22 556.84 -0.29% -6.60% > BONDS Yield Yield Spread Daily (bid) change vs change Bund in Czech spread Republi c CZ2YT= <CZ2YT= 1.2910 0.0890 +194b +8bps RR 2-year RR> ps CZ5YT= <CZ5YT= 1.0740 -0.085 +171b -9bps RR 5-year RR> 0 ps CZ10YT <CZ10YT 1.3690 -0.010 +177b -1bps =RR 10-year =RR> 0 ps Poland PL2YT= <PL2YT= 1.4200 -0.016 +207b -3bps RR 2-year RR> 0 ps PL5YT= <PL5YT= 1.7300 0.0020 +237b +0bps RR 5-year RR> ps PL10YT <PL10YT 1.9710 0.0060 +237b +1bps =RR 10-year =RR> ps FORWARD RATE AGREEM ENT 3x6 6x9 9x12 3M interb ank Czech <CZKFRA 2.25 2.24 2.11 2.18 Rep ><PRIBO R=> Hungary <HUFFRA 0.28 0.31 0.35 0.20 ><BUBOR => Poland <PLNFRA 1.73 1.71 1.67 1.71 ><WIBOR => Note: are for ask FRA prices quotes **************************************** ********************** (Reporting by Jason Hovet in Prague and Aleksandar Vasovic in Belgrade, Editing by Angus MacSwan)