WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Most Asian equity markets rebounded on Thursday following the Chinese government’s new measures to support the domestic equity market, while European bourses were advancing in early trade at the time of writing on renewed optimism about a possible deal between Greece and its creditors. In FX markets, the USD was weaker against its major currency peers as June’s FOMC meeting minutes signaled that most FOMC members will likely require further signs of economic acceleration before the Fed embarks on a rate-tightening cycle.
GREECE: The Greek government submitted yesterday to the European Stability Mechanism (ESM) a 3-year loan request in order to meet the country’s debt obligations and to ensure stability of the financial system. The size of the requested loan is not yet known but media reports estimate it around €60bn – €70bn. To this end, the Greek government will submit its detailed proposals for a comprehensive and specific reform agenda by Friday 10 July, 05:30 GMT at the latest.
SOUTH EASTERN EUROPE
BULGARIA: According to preliminary data the seasonally adjusted Industrial Production Index advanced by 0.4%MoM in May, bringing the annual rate of increase to 3.9% (working day adjusted). Meanwhile, retail sales increased by 0.8%YoY on a seasonally adjusted basis in May, picking up some pace from a 0.5%YoY rise marked in the prior month.
ROMANIA: According to local media reports, Central Bank Governor Mugur Isarescu said yesterday that the country’s entry into the euro zone may be deferred for after 2025.
CESEE MARKETS: CESEE stock markets were mixed in early European trade on Thursday as caution prevailed in view of Greek-related concerns. On the other hand, most regional currencies recovered some ground and government bonds firmed.