Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Mirroring the positive tone in Asia today, the majority of European bourses retained a firm tone in early trade supported by the recent decision of the People’s Bank of China (PBoC) to cut banks’ reserve requirements for the second time in the last couple of months. In FX markets, major currency crosses consolidated in early European trade.
GREECE: The Euro Working Group will convene later today to prepare the ground for Friday’s Eurogroup where euro area finance ministers will reportedly take stock of the progress of negotiations between the Greek government and the Institutions. Speaking to reporters y-day, European Commission President Jean-Claude Juncker said that while official discussions between the two sides have accelerated in the past few days, they have not advanced yet enough for a final agreement to be reached soon.
CYPRUS: According to data released by Eurostat on Tuesday, Cyprus’s general government deficit came in at 8.8% of GDP in 2014, well in excess of the 3% of GDP Maastricht criterion.
SOUTH EASTERN EUROPE
ROMANIA: According to data released by Eurostat on Tuesday, Bulgaria’s general government deficit (based on the ESA 2010 system of national accounts) widened to 2.8% of GDP in 2014 from a shortfall of 0.9% of GDP a year earlier, though remaining below the 3% of GDP Maastricht criterion.
ROMANIA: According to data released by Eurostat on Tuesday, Romania’s general government deficit (based on the ESA 2010 system of national accounts) narrowed to 1.5% of GDP in 2014 from a 2.2% of GDP shortfall in the prior year, remaining below the 3% of GDP Maastricht criterion.
SERBIA: Speaking to the press on the sidelines of a meeting with European Commissioner for Neighbourhood Policy and Enlargement Negotiations Johannes Hahn on Tuesday, Prime Minister Aleksandar Vucic expressed belief that negotiating chapters of the country’s EU accession will be opened in June adding that Serbia will complete in the coming days an action plan for two of the 35 Chapters, namely, Chapters 23 and 24.
CESEE MARKETS: Taking their cue from gains in European stock markets, emerging bourses resumed their uptrend on Tuesdaysnapping a 2-session losing streak. On the flipside, CESEE currencies and government bonds were mixed.
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