WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Tracking new record highs in Dow Jones and S&P 500 overnight as well as gains in Asian bourses on Wednesday, major European stock markets moved broadly higher in morning trade favored by upbeat US GDP data, in thin trade ahead of the Christmas holidays. Against this backdrop, the US dollar retained a firm tone earlier today.
GREECE: The outcome of the second vote in Greek Parliament for the election of a new President of the Hellenic Republic that took place on Tuesdaywas within market expectations, with 168 MPs voting in favor of the presidential nominee out of the 200 in-favor votes required. As a result, a third and final ballot will take place on December 29, with a 3/5ths majority i.e., 180 “yes” votes needed.
SOUTH EASTERN EUROPE
SERBIA: Public Debt Administration sold on Tuesday €50m worth of 3Y EUR-denominated T-Notes at an average accepted yield of 4.47%.
CESEE MARKETS: Emerging stock markets tread water in European trade on Wednesday, in thin trade ahead of the Christmas holidays, while caution prevailed after S&P warned it may downgrade Russia’s sovereign credit ratings in the new year and upbeat US macroeconomic data supported the view that the Fed may hike interest rates sooner than previously expected. In a similar vein CESEE currencies were relatively flat on the day, with the Turkish lira little changed ahead of the MPC meeting decision later today, where the Central Bank is anticipated to stay put on interest rates.