WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Market uncertainty on Greece prevails with technical talks between the two sides continuing today, ahead of Saturday’s extraordinary Eurogroup. Against this background, the majority of global equity markets were weaker on Friday and German government bonds firmed. In FX markets, both the JPY and the CHF were among the main outperformers as market uncertainty favors their safe-haven appeal.
GREECE: The extraordinary Eurogroup that took place yesterday did not reach a final deal on Greece. According to press reports, euro area finance ministers demanded that technical negotiations continue so as for the two sides to bridge their differences and submit a single staff-level agreement to another extraordinary Eurogroup that will be held on Saturday.
SOUTH EASTERN EUROPE
ROMANIA: According to media reports quoting Finance Minister Eugen Teodorovici the government failed to reach an agreement with the European Commission on the country’s programme review due to disagreement over the new fiscal code.
SERBIA: Speaking on the sidelines of a news conference, Finance Minister Dusan Vujovic reportedly said on Thursday that an IMF mission will visit Serbia between August 20-30th for the completion of the country’s 2nd review under the IMF’s €1.2bn 3-year precautionary Stand-By Arrangement. The finance minister also reiterated that he anticipates the IMF to approve the first review of the country’s programme later today.
CESEE MARKETS: Emerging stock markets pared part of their weekly gains on Friday, with Chinese shares leading the way lower and investor caution prevailing amid mounting concerns over the Greek issue. Bourses in the CESEE region and government bonds were mixed in early European trade today, while regional currencies were little changed.
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