Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Major European bourses opened lower on Tuesday amid increased expectations that the FOMC will probably embark on a rate tightening cycle before year-end. Elsewhere, US Treasury yields continued to consolidate around recent multi-session highs helping the USD retain a firm tone across the board.
GREECE: Speaking at a news conference y-day, government spokesman Gabriel Sakellaridis reassured that the government has the money to make monthly wage and pension payments due in the period May 29 – June 2. Concerning the upcoming debt payments due to the IMF in June amounting c. €1.5bn cumulatively starting with a c. €300mn interest payment on June 5, Mr. Sakellaridis reiterated the government’s official stance that it has the responsibility to pay all its obligations, adding that, based on the liquidity problems the government currently faces, there is “an imperative need” for Greece and the euro area an agreement to be sealed as soon as possible.
SOUTH EASTERN EUROPE
BULGARIA: The Ministry of Finance sold on Monday BGN 50mn of 3-year T-bonds at an average accepted yield of 0.68%.
SERBIA: Average gross salaries and wages decreased for the third month running in April, marking a 2.8%YoY decline.
CESEE MARKETS: Emerging stock markets closed broadly lower on Monday on expectations that the Fed will incept its rate-hiking cycle later in the year. Investor caution also prevailed as negotiations between Greek authorities and the Institutions continue, while the unexpected defeat of incumbent Bronislaw Komorowski in Sunday’s Presidential elections in Poland also weighed. In view of deteriorating sentiment towards risky assets, regional currencies andgovernment bonds closed broadly weaker on Monday.
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