Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Major Asian bourses edged lower on Wednesday and major European equity indices also lost ground in early trade, taking their cue from the negative tone that prevailed in Wall Street overnight due to weak corporate earnings announcements. On the data front, focus today is on US existing home sales for June.
GREECE: The Hellenic Parliament is expected to legislate today the second set of prior actions required for the inception of official discussions on a 3-year ESM loan facility as envisaged in the 12 July Euro Summit agreement. The prior actions include: (i) adoption of the Code of Civil Procedure, with a view to accelerating the judicial process and reducing costs in the civil justice system; and (ii) transposition of the BRRD with support from the European Commission.
SOUTH EASTERN EUROPE
ROMANIA: According to data released from the National Employment Agency, Romania’s unemployment rate was nearly flat in June, coming in at 4.94% vs. 4.93% in the prior month. In other news, an IMF technical mission is reportedly scheduled to visit Romania today.
CESEE MARKETS: Taking their cue from losses in major global bourses following downbeat Q3 corporate earnings results from the US, the majority of emerging stock markets moved lower earlier on Wednesday. Against a similar backdrop, regional currencies broadly weakened earlieron Wednesday. In other news, Serbia’s Ministry of Finance sold on Tuesday €34.61mn of 2.5% July 2018 EUR-denominated T-bonds, at an average accepted yield of 3.85%.
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