WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Bucking the negative trend in Asian bourses, European equity markets moved broadly higher in early trade on Monday as a halt in the decline of oil prices earlier in the session provided some support to energy shares. In FX markets, the Japanese yen firmed against its major currency peers, shrugging off a largely expected landslide victory for Japanese Prime Minister Shinzo Abe’s coalition in Sunday’s general elections. The upcoming FOMC meeting on December 16-17 takes centre stage this week.
SOUTH EASTERN EUROPE
SERBIA: HICP was flat on a monthly basis in November, with the annual rate of increase coming in at 2.4% and remaining below the Central Bank’s target of 4 +/-1.5% for the ninth month running.
ROMANIA: The leu came under pressure on Friday, with the EUR/RON breaking above key technical levels and hitting a 9-month peak of 4.4900 in late after-hours trading after the government announced its decision to extend taxes on energy firms.
BULGARIA: Standard & Poor’s revised downwards on Friday its long and short-term sovereign credit ratings on Bulgaria from BBB-/A-3 to below investment grade of BB+/B, with stable outlook, citing this year’s banking sector turmoil and ensuing deterioration in the country’s fiscal position.
CESEE: Taking their cue from losses in Asia, the majority of emerging stock markets kicked off the week on a negative footing. Meanwhile, CESEE bourses and currencies were mixed. Focus this week is on Hungary’s MPC meeting decision, as well as on CPI and current account data for November and October, respectively, from Bulgaria and Poland.
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