PRAGUE, Oct 17 (Reuters) - Central Europe's currencies

pulled back on Friday, with Poland's zloty retreating from a

one-month high, as a brief rally sputtered and global stock

markets fell on jitters over U.S. regional lenders.

Central European currencies were still on course for a

weekly gain, coming after heavier losses in the previous week

that knocked the Hungarian forint and the Czech crown off

multi-month peaks.

Overnight, U.S. regional lender Zions sank 13%

after disclosing it would take a $50 million loss in the third

quarter on two loans from its California division. Western

Alliance's stock slumped 11% after it initiated a

lawsuit alleging fraud by Cantor Group V, LLC. Cantor's

attorneys denied the allegations.

Those developments hit sentiment in global markets, causing

a pullback from riskier emerging market assets, like in central

Europe, where investor demand has been strong in recent weeks.

Stock markets fell, led by Warsaw's WIG20 blue-chip index

losing over 2% at one point. Moves in currencies were

more muted, with the zloty down 0.15% at 4.2535 per

euro at 1015 GMT, after touching a high of 4.2455 on Thursday.

The Polish currency has been mostly range-bound for months,

caught between solid economic developments and a central bank

that has been cutting interest rates.

"The market is waiting for a trigger that could increase the

record-low volatility, but it's difficult to pinpoint such a

factor at this time," Bank Millennium said in a note.

Markets could start looking to a potential meeting between

U.S. President Donald Trump and Russian President Vladimir Putin

in the Hungarian capital Budapest to discuss ending the war in

Ukraine - which Trump announced on Thursday.

The forint led losses alongside the zloty on Friday, easing

0.3% to 390.85 per euro. The currency has been bouncing off

16-month highs - at 387.60 to the euro - in recent trading,

bolstered by Hungarian interest rates staying on hold at a

joint-EU high.

The Czech crown also hit a 25-month high - at 24.21 to the

euro - in early October before losses last week. It traded at

24.311 on Friday.

Bank CSOB said the crown could hold around levels hit this

week, with U.S. regional bank jitters weighing it down on one

side and hope of resolving the Ukraine-Russia conflict

supporting it on the other.

CEE MARKETS SNAPSHOT AT 1215 CET

CURRENCIES Latest Previou Daily Change

trade s close change in 2025

Czech 0

Hungary 00 0

Polish Romania Serbian 00 0 %

Note: daily change calculated

from 1800 CET

STOCKS Latest Previou Daily Change

s close change in 2025

Prague 2341.3 2378.53 -1.56% +33.02

1 00 %

Budapes 102260 103065. -0.78% +28.91

t .61 51 %

Warsaw 2 %

Buchare 21772. 21743.1 +0.14 +30.21

st 78 8 % %

BONDS Yield Yield Spread Daily

(bid) change vs change

Bund in

spread

Czech ps

2-year

Czech ps

5-year

Czech ps

10-year

Poland ps

Poland ps

Poland ps

FORWARD RATE 3x6 6x9 9x12 3M

AGREEMENTS interba

nk

Czech Poland Note: FRA quotes are for ask prices