Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Trailing losses in Wall Street overnight, Asian stock markets moved broadly lower on Wednesday after better-than-expected data from the US released in the prior session further added to the view that the Fed will probably embark on a rate tightening cycle before year-end. Against this backdrop, theUS dollar retained a firm tone in European trade today.
GREECE: According to final January-April 2015 state budget execution data, published yesterday by the Ministry of Finance, the state budget balance recorded a deficit of €510mn against a target for a €2.918bn shortfall, while the state budget primary balance ran a surplus of €2.103bn outperforming a target for a deficit of €310mn.
SOUTH EASTERN EUROPE
ROMANIA: In accordance to this year’s good fiscal performance, the general government consolidated budget surplus rose to 0.85%of GPD (cash basis) in the first four months of the year from 0.7% in Q1 2015.
SERBIA: Minister for state and local administration, Kori Udovicki, reportedly said yesterday that the total number of its public servants will be reduced by ca 3% this year, less than the 5% agreed under a Stand-By Arrangement with the International Monetary Fund.
CESEE MARKETS: Emerging stock markets closed broadly lower on Tuesday, extending this week’s downtrend amid persisting 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. Regional currencies extended their recent losses on Tuesday, as the US dollar’s upside momentum remained intact, while CESEE government bonds also fell.
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