WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Major European bourses kicked off the week on a negative tone as worries over the outlook of the world economy linger. Solid US Q3 corporate earnings results last week and positive US data released on Friday, failed to exert a positive impact. The US Q3 corporate earning season comes in full swing this week as 228 S&P companies are scheduled to publish their results. On the data front, focus this week is on China’s Q2 GDP, due on Tuesday. In the US, market interest will centre on Wednesday’s CPI while in the Eurozone, Thursday’s PMI services and manufacturing data for October lure market attention
GREECE: Speaking on Friday on the sidelines of the Asia-Europe Summit, Greece’s Prime Minister Antonis Samaras reiterated that the current government will complete its 4-year term and general elections will be held in 2016. He reiterated Greece’s commitment to the implementation of the structural reforms agenda and its intention to exit the current financing program earlier than scheduled adding that a precautionary credit line is part of negotiations with official lenders.
SOUTH EASTERN EUROPE
SERBIA: Minister of Finance Dusan Vujovic presented to local media on Friday some of the details of the first draft of the 2014 budget revision, envisioning an increase in the unconsolidated budget deficit from the previously projected RSD 182bn to RSD 224bn (ca €1.92bn).
ROMANIA: S&P affirmed on Friday its long- and short-term foreign and local currency sovereign credit ratings on Romania at ‘BBB-/A-3’, with stable outlook.
BULGARIA: Bulgaria’s new car registrations increased modestly, by 0.6%YoY to 1, 567, in September, following a decline of 0.8%YoY in the prior month.
CESEE MARKETS: Emerging stock markets extended Friday’s rebound in morning trade on Monday, on hopes about further stimulus measures by Chinese authorities. Meanwhile, CESEE currencies were little changed in Europe today as sentiment remained fragile. Elsewhere, the majority of government bonds resumed their recent rally in European trade on Monday thanks to increased expectations for further monetary easing by regional Central Banks.
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