Wires

CEE MARKETS-Currencies weaken after euro zone PMI disappoints

WARSAW, Oct 24 (Reuters) - Central European currencies weakened on Thursday, as markets awaited comments from Mario Draghi after his last meeting as European Central Bank President, following euro zone PMI data that showed business activity barely expanding in October. Despite the ECB announcing plans for fresh stimulus in September, euro zone private sector activity has barely expanded in October, according to IHS Markit's flash composite PMI data.

"If the activity in the euro zone economies is not doing all that well we are going to suffer the same fate in some time, especially since Germany is not doing all that hot," said Piotr Poplawski, senior economist at ING. The Polish zloty fell 0.11% against the euro to 4.279, while the Hungarian forint fell 0.38% to 329.4 and the Czech crown was little changed at 25.619. The Czech currency shed as much as 0.4% on Wednesday after Czech central bank vice-governor Marek Mora was quoted by Bloomberg as saying the arguments for an interest rate hike have weakened since the last meeting. Draghi will bow out as head of the ECB at the end of the month, and his final meeting in charge is not expected to see any policy action, but rather a defence of his decision to restart the ECB's bond-buying programme despite opposition from a large number of rate setters. "We expect stronger than usual calls from Draghi to start loosening fiscal policy in Europe to support economic growth in the euro zone in synergy with the ECB's monetary policy," Bank Millennium analysts said in a note. Polish 10-year yields rose 2.3 basis points to 1.986% while Czech 10-year paper traded at 1.385%, up 1.5 basis points. The moves tracked euro zone yields after the bleak tone for business activity set by the PMI readings. The region's stock markets were mainly in positive territory, with the exception being Warsaw, where the WIG 20 index was down 0.32%. The index was dragged down by Poland's biggest refiner PKN Orlen which fell 4% after its third-quarter net profit missed analysts' estimates.

CEE SNAPSHOT ATMARKETS 1242 CET

CURRENCI ES

Latest Previous Daily Changebid close change in 2019Czech 25.6190 25.6220 +0.01% +0.34%

crown

Hungary 329.4000 328.1400 -0.38% -2.52%

forint

Polish 4.2790 4.2743 -0.11% +0.25%

zloty

Romanian 4.7510 4.7560 +0.11% -2.04%

leu

Croatian 7.4500 7.4410 -0.12% -0.54%

kuna

Serbian 117.5300 117.6100 +0.07% +0.66%

dinar

Note: calculated from 1800 CET

daily change

Latest Previous Daily Changeclose change in 2019Prague 1065.92 1059.290 +0.63% +8.04%

0

Budapest 42142.46 41845.95 +0.71% +7.67%Warsaw 2201.41 2208.54 -0.32% -3.30%Bucharest 9629.34 9619.19 +0.11% +30.41%Ljubljana 870.65 873.15 -0.29% +8.25%Zagreb 2020.38 2017.20 +0.16% +15.53%Belgrade <.BELEX15 752.51 753.18 -0.09% -1.21%>Sofia 558.35 559.56 -0.22% -6.07%

BONDS

Yield Yield Spread Daily(bid) change vs Bund change

in

Czech spread

Republic

2-year <CZ2YT=RR 1.2870 0.0520 +195bps +5bps>5-year <CZ5YT=RR 1.1190 0.0520 +175bps +5bps>10-year <CZ10YT=R 1.3850 0.0150 +177bps +0bps

R> Poland

2-year <PL2YT=RR 1.4970 0.0040 +216bps +0bps>5-year <PL5YT=RR 1.7260 0.0070 +236bps +0bps>10-year <PL10YT=R 1.9860 0.0230 +237bps +1bps

R>

FORWARD RATE AGREEMEN

T

3x6 6x9 9x12 3M

interban k

Czech Rep < 2.21 2.17 2.07 2.18

PRIBOR=>

Hungary < 0.27 0.33 0.31 0.21

BUBOR=>

Poland < 1.74 1.70 1.67 1.72

WIBOR=> Note: FRA are for ask prices quotes

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(Reporting by Alan Charlish; Editing by Hugh Lawson)