Wires

CEE MARKETS-Currencies, stocks weaken on geopolitical jitters

0917 GMT, the forint, which has underperformed

BUDAPEST, Sept 17 (Reuters) - Central European currencies and stocks fell on Tuesday amid geopolitical concerns raised by attacks on Saudi oil facilities, with Hungary's forint reaching a record 333.53 against the euro. its peers in the region this year by easing 3.7%, was down about 0.4%. Other regional currencies were trading 0.1 to 0.2% lower. "This weakening today is probably due to the renewed tensions between the United States and Iran, which has soured investor sentiment," a dealer in Budapest said. The forint was in a weakening trend, she said, and could test its all-time low soon, since the Hungarian central bank was not expected to change its dovish stance at next week's meeting. "The historical low of 333.45 is the only significant resistance for the forint ... should the currency ease past this level, that could bring about further sudden losses," Erste analysts said in a note. On Monday, Gergely Gulyas, Prime Minister Viktor Orban's chief of staff, told Reuters the government had no exchange rate target, but the current rate "posed no threat to the success of Hungarian economic policy." The central bank has so far not commented on the forint's easing, also saying it had no exchange rate target. The bank holds its next policy meeting on Sept. 24 when it will publish its fresh inflation forecasts. Investors will watch the bank's comments on whether it expects the weaker forint to boost inflation in the longer run. Unlike with the European Central Bank, which cut rates and began a new stimulus programme last week, monetary policy-makers in central Europe remain noncommittal. Investors are waiting for a Federal Reserve policy meeting on Wednesday, which is a widely expected cut to interest rates. Most analysts doubt the region's central banks will follow global central banks' footsteps anytime soon. Czech central bankers Marek Mora and Oldrich Dedek both told Reuters this week rate they expect rates to remain stable, since the Czech economy remains resilient in the face of slowdowns abroad. The Czech central bank's monetary department chief, Petr Kral, said in a blog post on Tuesday that the bank could raise interest rates once more in the near future if its baseline economic forecast scenario is met.

CEE SNAPSHO ATMARKETS T 1044

CET CURRENC IES

Latest Previou Daily Change

s

bid close change in 2019EURCZK Czech <EURCZK 25.8880 25.8490 -0.15% -0.70%= crown =>EURHUF Hungary <EURHUF 333.240 332.100 -0.34% -3.65%= forint => 0 0EURPLN Polish <EURPLN 4.3370 4.3280 -0.21% -1.09%= zloty =>EURRON Romanian <EURRON 4.7360 4.7341 -0.04% -1.73%= leu =>EURHRK Croatian <EURHRK 7.3930 7.3943 +0.02% +0.23%= kuna =>EURRSD Serbian <EURRSD 117.490 117.600 +0.09% +0.69%= dinar => 0 0Note: calculated from 1800daily CET

change

Latest Previou Daily Change

s

close change in 2019.PX Prague 1058.06 1060.83 -0.26% +7.25%

00

.BUX Budapest 40575.8 40819.5 -0.60% +3.67%6 6.WIG20 Warsaw <.WIG20 2201.23 2217.84 -0.75% -3.31%>.BETI Buchares 9281.32 9289.26 -0.09% +25.70t %.SBITO Ljubljan <.SBITO 854.97 858.87 -0.45% +6.31%P a P>.CRBEX Zagreb <.CRBEX 1892.96 1895.07 -0.11% +8.24%>.BELEX Belgrade <.BELEX 762.16 757.47 +0.62% +0.06%15 15>.SOFIX Sofia <.SOFIX 579.70 580.02 -0.06% -2.48%>

BONDS

Yield Yield Spread Daily(bid) change vs Bund change

in

Czech spread

Republic

CZ2YT= 2-year <CZ2YT= 1.3350 -0.0470 +204bp -5bpsRR RR> sCZ5YT= 5-year <CZ5YT= 1.1040 -0.0740 +185bp -7bpsRR RR> sCZ10YT <CZ10YT 1.4040 -0.0220 +190bp -1bps=RR 10-year =RR> s

Poland

PL2YT= 2-year <PL2YT= 1.5220 -0.0140 +223bp -2bpsRR RR> sPL5YT= 5-year <PL5YT= 1.8890 0.0080 +263bp +2bpsRR RR> sPL10YT <PL10YT 2.1350 0.0090 +263bp +3bps=RR 10-year =RR> sFORWARD RATE AGREEME

NT

3x6 6x9 9x12 3M

interba nk

Czech <CZKFRA 2.16 2.09 1.98 2.14Rep ><PRIBO

R=>

Hungary <HUFFRA 0.27 0.33 0.32 0.21><BUBOR

=>

Poland <PLNFRA 1.73 1.73 1.72 1.72><WIBOR

=>

Note: are for askFRA prices

quotes

(Reporting by Robert Muller in Prague, Krisztina Than in Budapest; editing by Larry King)