WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: European stock markets broadly advanced in morning trade on Wednesday ahead of the ECB meeting tomorrow, while M&A news also appeared to have a positive impact. With regards to the former, the ECB is broadly anticipated to stay put on its monetary policy, while President Mario Draghi is likely to signal, once again, that the prospect of additional monetary easing remains on the cards. Against this backdrop, the euro extended its recent losses earlier today, while the USD dollar further advanced against other major currencies receiving additional support from Fed officials’ comments.
SOUTH EASTERN EUROPE
SERBIA: Russian President Vladimir Putin said late on Monday that Russia can not continue with the construction of the South Stream gas pipeline, due to opposition from the EU.
ROMANIA: According to local media quoting Prime Minister Ponta on Tuesday, the general government budget ran a 0.2% of GDP deficit over the first eleven months of the year, swinging from a surplus of 0.3% of GDP recorded over the January-October period.
BULGARIA: The annual rate of increase in the Producer Prices Index in the domestic market returned into a positive territory for the first time in 16 months in October, somewhat easing deflation concerns.
CESEE MARKETS: The majority of emerging stock markets fell in European trade on Wednesday, led by losses encountered in Asia. In the CESEE region, most indices were in the black in the wake of upbeat macroeconomic data releases, in Hungary and Romania. In the FX markets, CESEE currencies were relatively flat on the day, with the Polish zloty broadly outperforming its regional peers amid expectations that the Central Bank will hold its key policy rate at the current record low 2.00% level at its MPC meeting today.