Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Retreating global equity markets and lower US front-end yields continued to exert a negative impact on the USD with the USD/JPY marking a fresh one-month low earlier today. Elsewhere, the EUR remained under pressure across the board mainly due to heightened expectations that the ECB will embark a sovereign-bond buying programme in the coming weeks/months.
GREECE: The Harmonized Index of Consumer Prices (HICP) dropped in December for the 22th consecutive month, remaining steadily below the euro area average since July 2011. Separately, in a statement issued y-day, Moody’s said that the recent political turmoil in Greece and early general elections have increased the risk of a Greek exit from the euro area. Yet, the ratings agency added that the likelihood of such a scenario is still lower than during the peak of the crisis in 2012 and remains relatively unlikely.
SOUTH EASTERN EUROPE
SERBIA: The EUR/RSD remained bound in a tight range of 122.65/85-122.80/00 on Tuesday, as caution prevailed ahead of the upcoming MPC meeting later in the week.
ROMANIA: According to final data, real GDP growth came in at 3.3%YoY in Q3 2014, revised slightly upwards from a previous 3.2%YoY estimate.
BULGARIA: The Ministry of Finance placed BGN 50mn at an auction on Monday, at an average accepted yield of 3.07% and a bid/cover ratio of 3.62.
CESEE MARKETS: Emerging stock markets fell in European trade today, tracking losses in major global bourses as falling oil prices continued to exert a negative impact on energy shares. Elsewhere, the majority of CESEE currencies recoiled in the wake of weak inflation data and ahead the Polish MPC meeting later today.
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Dailyoverview January 14, 2015
