Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The majority of European bourses opened lower on Thursday after a recent bulk of firmer-than-expected US data and last week’s modestly hawkish comments by Fed Chair Janet Yellen added to the view that the US Central Bank will raise interest rates sooner rather than later. Against this backdrop, the US dollar retained a firm tone in European trade.
GREECE: The latest reports on progress in the negotiations between Greece and its official lenders as well as the chances for a comprehensive agreement in the sessions ahead, are mixed. Meanwhile, the ECB reportedly decided at its non-policy meeting y-day not to increase the ELA funding ceiling for the first time since granting approval for the provision of that scheme to Greek banks in mid-January.
SOUTH EASTERN EUROPE
ROMANIA: Romania’s M3 money supply rose by 6.9%YoY in April, thanks to increasing deposits which registered a 6.3%YoY advance over the said month.
SERBIA: Serbia’s Central Bank (NBS) Governor Jorgovanka Tabakovic said on Wednesday that it will implement further monetary policy easing with caution in view of external pressures.
CESEE MARKETS: Emerging stock markets closed broadly lower on Wednesday, extending their recent losses, as recent comments by Federal Reserve Chair Janet Yellen and upbeat data from the US have bolstered expectations for the FOMC to incept its rate-hiking cycle later in the year. On the flipside, regional currencies and government bonds recovered some ground to close modestly firmer on the day.
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