WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Comments by a number of FOMC officials y-day supported the view that US interest rates will rise this year and the domestic economy can handle the stronger US dollar. Against this background, the USD moved modestly higher in European trade on Tuesday.
GREECE: Speaking in the joint press conference y-day following their bilateral meeting in Berlin, the Greek Premier characterized the talks with the German Chancellor as “positive” emphasizing that his intention for the meeting was not “to ask for financial help” but to exchange views. On her part, the German Chancellor said that the meeting was held in “a spirit of trust” while she underlined that the Greek list of reforms will have to be discussed with the institutions, not with Germany. On this issue, speaking in a local TV station y-day, Greek government spokesman Gavril Sakellaridis said that the government will present a full reform list “by early next week”.
CYPRUS: According to the latest Business and Consumer Surveys from the Economic Research Centre of University of Cyprus, economic sentiment deteriorated modestly in March, with the corresponding indicator (ESI) falling 0.2 points on a monthly basis to 103.7.
SOUTH EASTERN EUROPE
BULGARIA: In an interview to local media on Monday, Minister of Tourism Nikolina Angelkova warned about a tough summer season ahead.
SERBIA: The consolidated general government budget swung into a deficit of RSD 11.30bn in February from a surplus of RSD 15.95bn in January, as a result of a 120%MoM increase in debt interest payments to creditors. In other news, the Public Debt Administration sold 82.95% of the €100mn offered, in 5-year EUR-denominated T-Notes at an auction on Monday at an average accepted yield of 4.79%, a tad below a yield of 5% achieved at a prior auction of similar maturity paper held in August last year.
CESEE MARKETS: Emerging market stocks broadly extended last week’s gains on Monday, on expectations that the Fed may be less aggressive in its upcoming rate-tightening cycle, anticipated to incept later this year. In a similar vein, CESEE currenciesbroadly firmed y-day.
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