Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Mirroring the positive tone in Wall Street overnight following the recent agreement between Greece and the institutions, major Asian bourses ended higher on Tuesday. Elsewhere, the picture in European equity markets was rather mixed at the time of writing, as investors’ caution prevailed ahead of a key vote in the Hellenic Parliament on a first set of measures agreed at the July 12 Euro Summit. In FX markets, the euro edged lower against the US dollar as market focus probably turns back towards the monetary policy divergence between the US and euro area.
GREECE: The Greek government is expected to bring to the Hellenic Parliament today the first set of measures which, according to the 12 July Euro Summit agreement, must be enacted by Wednesday 15 July. The vote of the measures will take place today. Meanwhile, the Governing Council of the ECB decided yesterday to maintain the Emergency Liquidity Assistance (ELA) to Greek banks at €88.6bn. The issue will be re-examined by the ECB Governing Council on Wednesday.
SOUTH EASTERN EUROPE
BULGARIA: The election of the new Central Bank governor is expected to take place today in the extraordinary session of Parliament.
ROMANIA: Prime Minister Victor Ponta was charged by prosecutors on Monday with forgery of documents, accessory to tax evasion and money laundering.
SERBIA: HICP rose by 0.5%MoM, bringing the annual rate of increase to a 3-month high of 1.9%YoY in June from 1.5%YoY in May, though remaining below the lower bound of the Central Bank’s 4±1.5% target tolerance band for the 16th month running.
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