Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Speaking in the post-meeting press conference y-day, ECB President Mario Draghi suggested that the Governing Council is strongly committed to fully implement the QE programme and is unanimous in the assessment that there is no reason to adjust its monetary policy stance due to the recent period of higher volatility. Responding to the ECB President’s comments, German government bond yields moved higher while the EUR/USD hit a fresh multi-week high earlier today.
GREECE: Speaking to reporters following his meeting late y-day in Brussels with the EU Commission President and the Eurogroup President, Greece’s Prime Minister Alexis Tsipras said that an agreement between Greece and official creditors is “close” adding that the IMF debt repayment due on Friday will be made. Mr. Tsipras stressed that the proposals under discussion would be “the Greek proposals” and that talks must end up with a “realistic point of view”. On his part, in a statement released shortly after the meeting, EU Commission President Jean-Claude Juncker said that talks were “constructive” and “intense work” for the completion of Greece’s review will continue.
SOUTH EASTERN EUROPE
ROMANIA: Finance Minister Eugen Teodorovici reportedly said on Wednesday that preliminary data showed that the budget balance remained in a surplus in May as well
CESEE MARKETS: Emerging stock markets broadly weakened on Wednesday, weighed down by a renewed uptick in US and German government bond yields. Meanwhile, news about the resignation of FIFA President Sepp Blatter had a negative impact on stocks in Qatar amid mounting concerns about the country’s winning bid for the 2022 World Cup. Elsewhere, CESEE currencies and government bonds were mixed yesterday.
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