Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The majority of global equity markets weakened on Wednesday and the JPY was among the main outperformers in FX markets on the back of heightened concerns about the prospects of the global economy. Focus today is on the minutes from the FOMC September meeting, which may shed more light on the timing of the first Fed rate hike.
GREECE: The first round of official talks between domestic authorities and official lenders in the context of the 5th program review was reportedly concluded late y-day. As per the same sources, the troika mission heads will depart from Athens today to attend the IMF/World Annual Meeting in Washington D.C. and are expected to return in early November. On the data front, the retail trade volume index, including automotive fuel, advanced by 4.8%YoY in July, recording the fifth annual improvement in the last nine months.
SOUTH EASTERN EUROPE
SERBIA: The Central Bank intervened anew in the FX markets on Tuesday to support the dinar which hit a new all-time low against the euro amid persisting fiscal consolidation concerns.
ROMANIA: Local rate markets on a consolidation mode on Tuesday.
BULGARIA: According to party officials, the winner of Sunday’s snap general elections, GERB, will hold a first round of negotiations onMonday, October 13, for the formation of a new government.
CESEE MARKETS: Emerging stock markets, CESEE currencies broadly fell in European trade on Wednesday amid global growth concerns; caution also prevailed ahead of the release of the FOMC’s September 16-17 meeting minutes later on the day.
