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CEE MARKETS-Czech crown leads gains in holiday-thinned CEE trade

* Czech PMI at six-year high, boosts assets

* CEZ shares hit fresh two-year high

* Central bank set to hike interest rates Thursday

BUCHAREST, Nov 1 (Reuters) - The Czech crown led regional gains on Wednesday, boosted by stronger-than-expected manufacturing data depicting continuous economic growth, though trading was light with Polish and Hungarian markets closed for All Saints Day holiday. Czech manufacturing business sentiment jumped to a six-year high in October due to expanding output and new orders, the Markit Purchasing Managers' Index (PMI) showed. The headline PMI reading rose to 58.5 in October from 56.6 in September, data compiled by IHS Markit showed. Analysts polled by Reuters forecast a 57.0 reading. A reading of 50 divides expansion from contraction. 25.5970 versus the euro. The Romanian leu traded virtually unchanged at 4.6030 and the Serbian dinar edged up 0.1 percent. Prague's stocks rose 0.4 percent on the day, chiefly helped by a 1.3 percent rise in CEZ shares to a fresh two-year high of 489.20 crowns. A Reuters poll showed analysts expect the Czech central bank, which began raising interest rates in August, to lift its 0.25 percent two-week repo rate again on Thursday. "The Czech National Bank (CNB) is highly likely to hike its policy rate by 25 basis points at Thursday's meeting, following a 20-basis-point hike in August and the removal of the Swiss-type euro/crown floor in April," Anders Svendsen, Nordea chief analyst said in a note. "The CNB almost seems eager to strengthen the CZK, which is already 5 percent stronger against the euro year to date."

CEE MARKETS SNAPSHOT AT 1051 CET

CURRENCIES

Latest Previous Daily Change bid close change in

2017

Czech crown 25.5970 25.6575 +0.24% 5.51% Hungary 311.4000 311.4700 +0.02% -0.83%

forint

Polish zloty 4.2333 4.2403 +0.16% 4.03% Romanian leu 4.6027 4.6020 -0.02% -1.47% Croatian 7.5200 7.5215 +0.02% 0.47%

kuna

Serbian 119.0400 119.1700 +0.11% 3.62%

dinar

Note: daily calculated previous close at 1800 change from CET

STOCKS

Latest Previous Daily Change close change in

2017

Prague 1070.05 1065.61 +0.42% +16.1

1%

Budapest 39611.64 39881.22 -0.68% +23.7

7%

Warsaw 2524.90 2517.03 +0.31% +29.6

2%

Bucharest 7847.72 7842.76 +0.06% +10.7

6%

Ljubljana 796.92 796.53 +0.05% +11.0

6%

Zagreb 1874.49 1881.01 -0.35% -6.03% Belgrade 730.18 730.72 -0.07% +1.79

%

Sofia 673.77 671.41 +0.35% +14.8

9% BONDS

Yield Yield Spread Daily (bid) change vs Bund change

in

Czech spread

Republic

2-year 0.402 0.098 +116bp +10bp s s 5-year 0.722 -0.04 +108bp -4bps

s

10-year 1.552 -0.043 +119bp -5bps

s Poland

2-year #VALUE! 0.001 #VALUE! +1bps 5-year #VALUE! 0.002 #VALUE! +1bps 10-year #VALUE! 0 #VALUE! +0bps FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

interb ank

Czech Rep <PR 0.9 1.08 1.21 0

IBOR=>

Hungary <BU 0.09 0.11 0.15 0.03

BOR=>

Poland <WI 1.77 1.84 1.95 1.73

BOR=>

Note: FRA are for ask quotes prices **************************************************************

(Additional reporting by Robert Muller in Prague; Editing by Emelia Sithole-Matarise)