WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS:. The USD retained a firm tone in European trade on Monday supported by persisting market expectations that the Fed could embark on a tightening cycle earlier than currently expected. Data-wise, market focus this week is on Germany’s IFO business climate index for the month of September (Wednesday), while in the US, the August durable goods orders report (Thursday) as well as a number of speeches by top Fed officials, take centre stage.
GREECE: Addressing the Athens Exchange’s London Roadshow, Greece’s Minister of Finance Gikas Hardouvelis was quoted as saying by local media that Greece will not need a new financing program from the official sector and IMF loan disbursements scheduled for release in the period between 2015 and Q1 2016 (i.e., after the release of the last EFSF loan installment) for the coverage of the projected financing gap in the next few years.
SOUTH EASTERN EUROPE
SERBIA: RSD retains a firm tone following the Prime Minister’s announcement of austerity measures.
ROMANIA: The MoF holds today a primary market auction for RON 400mn of 10Y bonds, expected to produce a yield of around 4.30-40%, possibly for less than the full target amount.
CESEE MARKETS: Most emerging bourses kicked off the week on a negative footing and CESEE currencies broadly weakened amid market anxiety ahead of key macroeconomic data releases from China later in the week. CESEE focus this week is on MPC meetings in Hungary and Turkey.