WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Taking their lead from the positive tone in Asia, major European bourses were firmer in early trade on Tuesday supported by market expectations that the ECB will adopt a sovereign-bond buying program at its upcoming policy meeting on Thursday. Today’s improved performance in global equity markets favored the US dollar while the EUR remained under pressure.
GREECE: According to the most recent Bank of Greece data, the total amount of funding taken by domestic financial institutions from the Eurosystem edged up in December coming in at an eight-month high of €56.04bn from €44.85bn in the prior month. On the latter, a Fitch Ratings economic report released earlier this week reportedly suggested that political uncertainty in Greece before and after the 25 January election is expected to raise liquidity and funding risks for banks adding that such strains should be manageable as banks are better prepared to withstand deposit outflows than in mid-2012 when elections were last held, as long as access to Eurosystem facilities is maintained.
SOUTH EASTERN EUROPE
SERBIA: EconMin Zeljko Sertic said late last week that the tender for the sell-side advisor for State-owned telecommunication company Telekom Srbije will be launched by the end of the month.
ROMANIA: The MoF sold on Monday RON 250mn in 2027 bonds (above an initially planned RON 200mn amount) in the primary market. The auction produced an unexpectedly low yield of 3.30%, which came in against a market median forecast of 3.40-50%.
BULGARIA: According the Regional Economic Prospects 2015, released yesterday, the European Bank for Reconstruction and Development revised lower its projection for Bulgaria’s real GDP growth for this year to 0.8% from 2.0% previously.
CESEE MARKETS: Emerging stock markets broadly firmed in European trade today, led by gains in Asian bourses following better-than-anticipated Q4 GDP data from China. Expectations that the ECB will adopt additional monetary stimulus measures at its upcoming MPC meeting on Thursday also continued to provide support. Elsewhere, CESEE currenciesconsolidated near Monday’s levels, while government bonds were mixed earlier today.
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