WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Taking their cue from broadly weaker Asian bourses on Monday, European stock markets kicked off the week on the back foot, pressured by global growth concerns and S&P’s downgrade on Italy’s sovereign credit ratings on Friday. In the FX markets, the US dollar extended its recent gains in European trade on Monday after upbeat US non-farm payrolls (NFP) report, released on Friday, added to expectations that the Fed may embark on a rate-hiking cycle sooner than currently anticipated.
SOUTH EASTERN EUROPE
SERBIA: The dinar further extended its recent losses on Friday weighed down by last week’s news about a standstill in the construction of the South Stream gas pipeline and increased hard currency demand due to seasonal factors.
ROMANIA: The MoF auctions today RON 500mn in April 2020 T-bonds, expected to produce a yield of around 2.87-92%.
BULGARIA: Domestic stock market indices broadly firmed on Friday, favoured by last week’s news about the repayment of guaranteed deposits in Corporate Commercial Bank.
CESEE MARKETS: The majority of emerging stock markets fell in European trade on Monday, as lower oil prices weighed down on energy-related shares, while speculation mounted that the Fed may start hiking interest rates sooner than previously expected after Friday’s NFP report. Against this backdrop, CESEE currencies broadly weakened and the majority of government bond yields moved higher.