Wires

CEE MARKETS-Currencies steady ahead of expected Fed rate cut

BUCHAREST, Oct 30 (Reuters) - Central European currencies held steady versus the euro on Wednesday ahead of an expected U.S. Federal Reserve rate cut, while in Bucharest oil and gas group OMV Petrom shares hit a one-week low after posting lower net profit. Shares of Romanian oil and gas group OMV Petrom, majority-controlled by Austria's OMV AG, fell 2.3% to 0.4270 lei ($0.0999) in early trade. The company said on Wednesday its third-quarter net profit attributable to shareholders fell 43% to 785 million lei ($183.47 million). By 0940 GMT Bucharest's blue chip index was down 0.3%. Warsaw's main index fell 0.2%, while Budapest and Prague shares were up 0.4% and 0.3%, respectively. Currencies were flat against the euro as investors braced for an interest rate cut by the Federal Reserve and clues on its policy outlook. Monetary policy loosening by the world's largest central banks has so far eased pressure to act on policymakers in central Europe, where consumption-driven economic growth has mostly held up in the face of a euro zone slowdown and concerns over Britain's now further delayed exit from the European Union. "In general, the dovish global central bank backdrop increases the degrees of freedom for CEE central banks to keep rates low for longer," Raiffeisen Bank said in a research note. Policymakers in the region have kept rates on hold, but in the Czech Republic some board members have spoken in favour of hikes. Analysts said the crown will be without any strong direction until next week's central bank meeting where policymakers are likely to debate potential rate hikes. In September the board voted 5-2 for stable rates, with two votes for a hike. In Romania, the leu was unfazed by the rejection on Tuesday of finance ministry nominee Florin Citu by parliament's joint budget and finance committees, whose decision is not binding. Citu's centrist National Liberal Party aims to win a parliamentary vote of confidence on Nov. 4, to replace the outgoing Social Democrat government, ousted in a parliamentary vote of no-confidence earlier this month. The finance ministry is expected to release domestic debt issuance plans for November, as well as budget data for September. The widening of the country's budget and current account deficits have weighed on assets. "We expect intensifying pressure in terms of sovereign financing costs in the short-run due to the weakening stance of the public finance," BT Capital Partners said in a research note.

CEE SNAPSHO ATMARKETS T 1100

CET CURRENC IES

Latest Previou Daily Change

s

bid close change in 2019Czech <EURCZK= 25.5280 25.5470 +0.07% +0.70%crown >Hungary <EURHUF= 329.800 329.900 +0.03% -2.64%forint > 0 0Polish <EURPLN= 4.2660 4.2635 -0.06% +0.55%zloty >Romanian <EURRON= 4.7570 4.7560 -0.02% -2.17%leu >Croatian <EURHRK= 7.4670 7.4555 -0.15% -0.76%kuna >Serbian <EURRSD= 117.540 117.420 -0.10% +0.65%dinar > 0 0Note: calculated from 1800daily CET

change

Latest Previou Daily Change

s

close change in 2019Prague 1064.55 1062.18 +0.22% +7.91%

00

Budapest 42561.1 42453.1 +0.25% +8.74%4 6Warsaw 2225.18 2227.93 -0.12% -2.26%Bucharest 9687.70 9713.66 -0.27% +31.20

%

Ljubljana <.SBITOP 858.18 854.19 +0.47% +6.70%>Zagreb 2010.81 2017.10 -0.31% +14.98

%

Belgrade <.BELEX1 749.93 749.57 +0.05% -1.54%

5>

Sofia 555.98 556.28 -0.05% -6.47%

BONDS

Yield Yield Spread Daily(bid) change vs Bund change

in

Czech spread

Republic

2-year <CZ2YT=R 1.3060 0.0680 +194bp +6bpsR> s5-year <CZ5YT=R 1.1200 -0.0170 +172bp -2bpsR s10-year <CZ10YT= 1.3800 -0.0040 +174bp -1bpsRR> s

Poland

2-year <PL2YT=R 1.4510 -0.0200 +209bp -2bpsR> s5-year <PL5YT=R 1.7530 0.0070 +236bp +1bpsR> s10-year <PL10YT= 2.0170 0.0090 +237bp +1bpsRR> sFORWARD RATE AGREEME

NT

3x6 6x9 9x12 3M

interba nk

Czech Rep 2.24 2.22 2.15 2.18

<PRIBOR=

>

Hungary 0.27 0.33 0.37 0.20Poland 1.74 1.71 1.68 1.71

Note: FRA are for ask

quotes prices*************************************************************

(Reporting by Luiza Ilie in Bucharest, Alan Charlish in Warsaw and Jason Hovet in Prague; Editing by Emelia Sithole-Matarise)