WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Taking their cue from the positive tone in Wall Street on Friday, major Asian equity markets were firmer today favoured by market expectations for the adoption of further policy stimulus by Chinese authorities to support domestic economic activity. Elsewhere, US Treasuries were modestly firmer in early trade on Monday while the FOMC Chairman’s mildly hawkish remarks assisted the USD to move higher.
GREECE: Discussions between Greek authorities and the Brussels Group on a fully costed list of reforms the Greek side submitted late last week are reportedly expected to continue on Monday for the third consecutive day. Local press reports suggested today that a number of issues still remain open. On the latter, local newswires quoted an unnamed high level euro area official as saying that the Euro Working Group will likely assess Greece’s reform proposals later this week (reportedly on Wednesday) but euro area finance ministers are not expected to convene before all the details are ironed out. Meanwhile, Prime Minister Alexis Tsipras has reportedly requested an extraordinary plenary session to be held today at 8pm Greek time to inform the Hellenic Parliament about the progress of ongoing discussions with the Institutions.
CYPRUS: Standard & Poor’s revised on Friday the outlook on the Republic of Cyprus sovereign credit rating to positive from stable, affirming the country’s B+/B long- and short-term foreign and local currency sovereign credit ratings.
SOUTH EASTERN EUROPE
BULGARIA: Domestic stock markets closed in the black on a weekly basis on Friday, with the main SOFIX index touching a 3-month intraday peak near 512 points to end the week 1.6% higher.
SERBIA: After repeated Central Bank interventions in the week before in order to mitigate downside pressure, the EUR/RSD closed modestly higher last week.
CESEE MARKETS: Emerging market assets closed broadly weaker last week, as the dollar regained ground on expectations about Fed tightening later in the year. Persisting geopolitical tensions in the Middle East also weighed on investor sentiment. Looking into this week, Romania’s MPC meeting lures market attention in the CESEE. NBR is broadly anticipated to deliver a 25bps cut in its key policy rate to a new record low of 2.00%.
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