WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The majority of major global bourses opened lower on Tuesday amid market cautiousness ahead of this week’s FOMC two-day policy meeting which commences later today. With investors awaiting the outcome of the FOMC policy meeting for more clues about the timing of the first rate hike since June 2006, the USD was under pressure against most of its currency peers in European trade on Tuesday.
GREECE: Speaking to a local TV station late y-day, Greece’s Prime Minister Alexis Tsipras expressed his optimism than an initial agreement with the Institutions on a package of reforms will be reached this week or next, in time for a c. €EUR 780bn amortization payment to the IMF due on May 12th. Mr. Tsipras ruled out the likelihood of calling snap elections noting though that the government may have to resort to a referendum if it ends up with an agreement that “falls outside” the electorate’s mandate./ Local press reports suggested that the Greek negotiating team was reshuffled with Euclid Tsakalotos, Alternate Foreign Minister of International Economic Relations, taking over the coordination of the Greek team
CYPRUS: Technical officials from the IMF, ECB and the European Commission are reportedly scheduled to resume discussions with the Central Bank of Cyprus later today in the context of the programme’s 5th review. Separately, the Republic of Cyprus opened on Tuesday the books on a seven-year euro-denominated (May 2022) benchmark bond with yield guidance in the 4.125% area.
SOUTH EASTERN EUROPE
ROMANIA: The finance ministry reportedly announced on Monday that the general government consolidated balance came in at a surplus of 0.7%-of-GDP in Q1 2015.
CESEE MARKETS: Emerging stock markets kicked off the week on a positive footing on optimism about further economic stimulus measures by Chinese authorities. The prevailing market perception that the Fed is in no rush to embark on a rate-tightening cycle also continued to favour. Along similar lines, CESEE currencies broadly strengthened on Monday, recovering ground in the wake of Friday’s losses. Meanwhile, government bonds closed mixed.
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