Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: According to the flash estimate released y–day, euro area annual inflation rose by 0.3%YoY in May, higher than 0.2%YoY expected, following a flat annual reading in the prior month. Reacting to the above, German government bond yields moved higher, assisting the EUR gain some ground. The ECB convenes today and market focus is on the post-meeting press conference as well as the updated macroeconomic staff projections.
GREECE: Speaking to reporters y-day, Greece’s Prime Minister Alexis Tsipras revealed that a “comprehensive” and “realistic” package of reforms was sent to official creditors on Monday night. Greece’s Premier stated that the government has made “difficult” concessions putting the onus for an agreement on official creditors. The Euro Working Group is reportedly expected to convene today by teleconference to discuss the Greek issue with some press reports suggesting that a Eurogroup is likely to be held on Friday. Meanwhile, Greece’s Prime Minister will travel to Brussels to meet with European Commission President Jean-Claude Juncker late today.
SOUTH EASTERN EUROPE
ROMANIA: Addressing Parliament on Tuesday, Prime Minister Victor Ponta said that the domestic economy could grew by more than 4% this year, thanks to planned tax cuts and bumper harvest.
CESEE MARKETS: Emerging stock markets fell for the sixth consecutive session on Tuesday, as investors are trying to gauge the timing of the inception of the Fed’s rate-hiking cycle, while caution prevailed as negotiations between Greek authorities and the Institutions continue. MostCESEE bourses bucked the negative trend to close broadly higher on the day, on optimism that a deal on the Greek issue will be reached soon. On the flipside, regional currencies ended modestly weaker on the day and government bonds closed mixed with paper of shorter maturity outperforming that of longer.
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Daily Overview June 3, 2015 (1)
