WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: In FX markets, the USD retained a firm tone in European trade on Wednesday with the DXY index hitting a fresh 12-year peak amid increased expectations that the Fed may embark on a tightening cycle earlier than expected.
GREECE: Talks on a technical level between the domestic authorities and the institutions on Greece’s proposed reform measures will commence in Brussels today while it is reportedly unclear when the institutions’ technical teams will arrive in Athens. As a reminder, the Eurogroup of March 9 decided ‘technical level’ discussions between the Greek authorities and the institutions to commence in Brussels on Wednesday, March 11 while joint technical teams from the institutions would be welcomed in Athens as of the same day, with a view to support the process for a successful completion of the review.
SOUTH EASTERN EUROPE
SERBIA: The Public Debt Administration sold in an auction on Tuesday just 20% of the planned RSD 10bn RSD-denominated 1-year T-Bills, at an average accepted yield of 8.40%.
ROMANIA: In line with the market’s median forecast consumer inflation came in at a new record low of 0.40%YoY in February, remaining nearly unchanged from January’s reading.
BULGARIA: Bucking the broadly negative trend in emerging stock markets, domestic bourses inched up on Tuesday with blue-chips leading the way higher.
CESEE MARKETS: With the recent upbeat NFP report still in investors’ ears, the majority of emerging market boursesextended this week’s losses earlier today on revived global growth concerns after industrial production data from China disappointed expectations. On the other hand, most CESEE indices stood in the black in European trade and regional currenciesbroadly firmed recouping part of the losses recorded yesterday. In the local rates markets, government bonds also recovered some ground, on the perception that there is still room for further rate cuts by several Central Banks in the region. The recently launched ECB QE programme also provided support.
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