WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The majority of Asian bourses fell on Wednesday led by losses in energy shares due to falling oil prices, while new macroeconomic data from China added to global growth concerns. Elsewhere, US stock futures pointed to a higher open and the US dollar firmed after Republicans won a landslide victory in U.S. mid-term elections.
SOUTH EASTERN EUROPE
SERBIA: The much-awaited negotiations between Serbian authorities and the IMF over a new 3-year precautionary loan agreement began on Tuesday.
ROMANIA: In line with the market’s median forecast, the National Bank of Romania (NBR) cut its key policy rate by 25bps to 2.75% at its MPC meeting yesterday and narrowed the symmetrical corridor of interest rates on the NBR’s standing facilities around the policy rate to +/- 250bps. However, in a largely unexpected move, the Central Bank decided to cut the minimum reserve requirements ratio (MRR) on FX-denominated liabilities of credit institutions.
BULGARIA: The winner of the October 5 snap general election, GERB, nominated Boyko Borisov as Prime Minister after striking a coalition agreement with the Reformist Bloc.
CESEE MARKETS: Taking their cue from weaker Asian bourses on Wednesday, the majority of emerging stock marketsextended this week’s losses in European trade. In the CESEE region, most indices registered modest gains, while currenciesmarginally weakened in European trade as the US dollar resumed its uptrend and regional Central Banks are expected to deliver further monetary easing ahead.
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