CEE markets wrap: Istanbul down; Warsaw at three-week high | beyondbrics: News and views on emerging markets | FT.com

Trading was mixed for the CEE region, as investors wait for the result of a two-day US Federal Reserve meeting tomorrow. Stocks on Moscow’s main index rallied despite an announcement from World Bank that it has cut its Russia growth forecast. Poland’s main WIG20 index rose to its highest point for nearly three weeks as higher-than-expected PMI data for October revealed output is growing at its fastest rate since 2004. In Istanbul, shares fell as BBVA bought a stake in one of the country’s largest banks.

Russia’s Micex index added 0.2 per cent to 1,537.27 as its commodity prices rose. KGHM, a copper and silver miner, jumped 2.6 per cent while petroleum company PKNO was up 2.2 per cent.

The World Bank cut its forecast for Russian economic growth in 2010 and cautioned that the amount of imports would continue rising, a factor that may continue to pressure the already weak ruble. Russia’s economic growth will be 4.2 per cent this year from a previous forecast of 4.5 per cent in June, the World Bank said in its latest Russia Economic Report.

Turkey’s ISE 100 shed 0.8 per cent to 552.12, as its financials lost out. Turkey’s treasury sold $5.1 billion of two-year benchmark and 10-year fixed-coupon bonds today, as yields rose from an auction last week.

The Spanish bank BBVA bought joint control of Turkish rival Garanti Bank in a $5.8bn deal.

Poland’s WIG20 was up 1.1 per cent to 2,679.22, its highest close for almost three weeks, as the country’s Purchasing Manager’s Index score for October rose to 55.6 points from 54.7 points in the previous month, its highest reading for six-and-half years.

The Czech Republic’s Prague exchange inclined 0.3 per cent to 1,160.80 while Romania’s Bucharest index shed 0.6 per cent to 5,233.26 with Banca Transilvania down 2.2 per cent.

Hungary’s benchmark index was flat as its PMI rose by 1.4 percentage points to 51.7 in October.

In currencies, at 16:45 BST, the Russian rouble was up 0.2 per cent against the dollar while the Turkish lira was up 1 per cent. The Hungarian forint was up 0.7 per cent while the Czech koruna was up 0.9 per cent. The Polish zloty gained 1.6 per cent.