WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: A special study conducted by the Federal Reserve Bank of San Francisco that was released earlier this week suggesting that the Fed is likely to embark on a more aggressive rate tightening path in the coming months compared to market expectations, continued to play a key role in global markets on Wednesday. In reflection to the aforementioned, US Treasuries moved lower while the USD retained a firm tone against its major currency peers.
GREECE: Addressing a join press conference in Athens with his Portuguese counterpart Pedro Passos Coelho, Prime Minister Antonis Samaras emphasized that Greece will not need a new financing program from the official sector after the current one expires at the end of 2014. On the data front, Greece’s Industrial Production Index fell by 2.1%YoY in July marking the fifth monthly consecutive decline while total road motor vehicles rose in August for the 10th month in a row, a development that has not been seen since mid-2004.
SOUTH EASTERN EUROPE
SERBIA: Public Debt Administration sold on Tuesday half of the planned RSD 15bn issue of 7Y bonds, at an average accepted yield of 11.79%.
ROMANIA: Consumer inflation surprised to the downside in August primarily on the back of falling food prices, marking a 0.3%mom decrease which brought the annual rate of increase to 0.8% and strengthening the case for a Central Bank policy rate cut at the next MPC meeting.
BULGARIA: The Ministry of Finance sold on Tuesday the planned BGN300mn of 1-year Treasury Bills at an average accepted yield of 0.78%.
CESEE MARKETS: The recent risk-off tone, which has been primarily fanned by worries over a more aggressive than currently expected Fed rate tightening path in the coming months and ongoing geopolitical jitters in Ukraine, was extended into early European trade on Wednesday, weighing down on emerging stock markets, currencies and bonds.