WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Mirroring the negative tone in Wall Street overnight, major Asian bourses ended lower on Tuesday on mounting concerns on the Greek issue after last weekend’s meetings in Brussels failed to break the impasse in the current round of talks between the Greek government and the institutions. Market anxiety ahead of the FOMC two-day monetary policy meeting which commences later today, also had an impact. In FX markets, major currency pairs remained range-bound in European trade. Elsewhere, German Bunds were little changed while EMU periphery sovereign debt spreads widened.
GREECE: According to the local press, the Euro Working Group convenes via teleconference at 15:00 GMT today ahead of Thursday’s Eurogroup meeting. Meanwhile, Greece’s Finance Minister Yanis Varoufakis was quoted saying in a German newspaper interview that he is not planning to submit new reform proposals at this week’s Eurogroup. Separately, speaking before the European Parliament y-day, ECB President Mario Draghi said that the ELA funding facility will continue to be extended to Greek banks as long as they are “solvent and have sufficient collateral”.
CYPRUS: The reliance of the Cypriot banking system on Emergency Liquidity Assistance (ELA) funding declined further to €6.4bn at end-May.
SOUTH EASTERN EUROPE
ROMANIA: The current account deficit came at €27 mn in Jan-April2015 down from €326 mn in the same period a year ago
SERBIA: HICP inched down, to 1.5%YoY, for the second month running in May, remaining below the lower bound of the Central Bank’s (NBS) 4±1.5% target tolerance band for the 15th month running.
BULGARIA: Consumer prices accelerated to 0.9% yoy in May up from 0.5% yoy in April.
Viewers can read the full report herebelow: