WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Bucking the positive trend in Asian bourses today following a renewed interest rate cut by the Chinese authorities on Sunday, the majority of European equity markets opened lower amid investor anxiety ahead of today’s Eurogroup meeting.
GREECE: Euro area finance ministers will convene today at 15:00 CET to take stock of the progress in official discussions between the Greek authorities and the Institutions. Although several EU officials have reportedly ruled out the likelihood of a final agreement at today’s meeting, the Greek government hopes that the wording of the accompanying official statement will reflect the progress in official talks recorded over the last few sessions, giving a positive sign over the prospect of reaching a final deal soon.
CYPRUS: According to a statement issued on Friday, upon the conclusion of an EC/ECB/IMF visit to Cyprus under the country’s economic reform program, staff teams “welcomed the authorities’ continued progress on their reform program.
SOUTH EASTERN EUROPE
BULGARIA: Taking their cue from the broadly negative tone in emerging bourses, the domestic stock market closed modestly lower on a weekly basis on Friday, with local indices quickly reversing a positive start into the week following upbeat Q1 corporate earnings reports.
ROMANIA: Short term RON rates moved progressively lower last week, in the wake of the RON 7.5bn bond redemption on April 30th. Elsewhere, the EUR/RON followed the depreciating trend in other emerging market currencies, hitting a 2-week peak of 4.4530on Thursday.
SERBIA: Monday’s Central Bank monetary policy meeting takes centre stage domestically this week. In line with our expectations, the market’s median forecast is for the key policy rate to remain unchanged at its current record low level of 7.00%. That said, a monetary easing announcement today should not come as a complete surprise as inflation pressures continue to be benign and domestic demand dynamics remain weak.
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