Wires

CEE MARKETS-Currencies weaken after strong run; CME shares sink

WARSAW, Oct 29 (Reuters) - Central European currencies gave up some of their recent gains on Tuesday after a strong run in recent weeks, while in Prague Central European Media Enterprises (CME) shares plunged on disappointment at the price of a acquisition bid. CME shares were down over 6% as investors ditched the stock after AT&T's agreement to sell its majority stake to Czech investor PPF in a $2.1 billion deal missed price expectations. Analysts said investors had expected a better price per share given the recent stock and company performance. Shareholders also had little chance to fight for a higher price before the deal's completion expected in the middle of next year. On currency markets, the Czech crown shed 0.2% to be bid at 25.56 to the euro and the Hungarian forint fell 0.1% to 328.55. The Polish zloty was steady at 4.272. "Current movements... are a consolidation after significant strengthening of PLN in recent weeks," DM BOS analyst Konrad Ryczko said in a note. "Investors are waiting for tomorrow's Fed rate cut." In their two-day policy meeting this week, U.S. Federal Reserve officials look set to cut rates for the third time this year, lowering the overnight benchmark lending rate to a new range of between 1.5% and 1.75%. The Romanian leu was little changed at 4.757, ahead of parliamentary committee hearings of the proposed cabinet ministers of centre-right Prime Minister designate Ludovic Orban, with a vote of confidence expected on Nov. 4. After rounds of negotiations, Orban's cabinet remains just short of the 233 votes it needs to pass, with more talks planned. In Hungary, the average unemployment rate for the July-September period came in at 3.5%, up slightly from 3.4% in June-August. "Despite some signs that the slowdown has arrived in Hungary, the labour market has remained resilient," Peter Virovacz, Senior Economist at ING in Hungary said in a note. Stocks were mainly higher, with all of the region's main indices in positive territory. The WIG 20 in Warsaw was up 0.5%, with Orange Polska rising 3.5% after it posted results broadly in line with market expectations and confirmed its guidance.

In Prague the PX index was up 0.2% while Budapest's main index gained 0.3%. Benchmark Polish 10-year yields were little changed at 2.022%. Czech 10-year bonds traded at 1.382%, up 1 basis point. "The Polish yield curve has... moved up, reflecting movement in the core markets. In the coming days, the Polish market will remain under the dominant influence of foreign events," PKO BP analysts said in a note

CEE MARKETS SNAPSHOT AT

1158 CET CURRENCIES

Latest Previous Daily Changebid close change in 2019EURCZK= Czech crown 25.5600 25.5020-0.23% +0.58%EURHUF= Hungary forint 328.5500 328.2400-0.09% -2.27%EURPLN= Polish zloty 4.2720 4.2730+0.02% +0.41%EURRON= Romanian leu 4.7570 4.7548-0.05% -2.17%EURHRK= Croatian kuna 7.4550 7.4530-0.03% -0.60%EURRSD= Serbian dinar 117.4000 117.4200+0.02% +0.77%Note: daily change calculated from 1800 CETLatest Previous Daily Changeclose change in 2019.PX Prague 1064.08 1061.5400+0.24% +7.86%.BUX Budapest 42052.70 41938.54+0.27% +7.44%.WIG20 Warsaw 2220.32 2211.80+0.39% -2.47%.BETI Bucharest 9698.71 9681.80+0.17% +31.35%.SBITOP Ljubljana 860.67 865.48-0.56% +7.01%.CRBEX Zagreb 2027.44 2014.73+0.63% +15.93%.BELEX15 Belgrade 746.90 747.46-0.07% -1.94%.SOFIX Sofia 560.79 560.16+0.11% -5.66%

BONDS

Yield Yield Spread Daily(bid) change vs Bund change in

Czech Republic spread

CZ2YT=RR 2-year 1.2940 0.0360+194bps +4bpsCZ5YT=RR 5-year 1.0850 -0.0660+169bps -7bpsCZ10YT=RR 10-year 1.3820 0.0110+172bps +3bps

Poland

PL2YT=RR 2-year 1.4640 -0.0190+211bps -2bpsPL5YT=RR 5-year 1.7490 -0.0100+235bps -1bpsPL10YT=RR 10-year 2.0220 0.0020+236bps +2bpsFORWARD RATE AGREEMENT3x6 6x9 9x12 3M interbankCzech Rep 2.24 2.22 2.13

2.18

Hungary 0.27 0.33 0.31

0.20

Poland 1.72 1.70 1.68

1.72

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

(Reporting by Alan Charlish in Warsaw and Jason Hovet in Prague Editing by Chizu Nomiyama)