WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The FOMC policy statement that was issued late yesterday following the conclusion of the two-day monetary policy meeting was little changed compared to the previous one in mid-June. Overall, the Central Bank refrained from sending a strong signal about its monetary policy deliberations ahead but left the door open for a rate hike at its next meeting on September 16 provided that, until then, there is “some further improvement in the labor market”. The Fed’s upgraded assessment of both the domestic economy and the labor market assisted US stocks to end higher overnight, US Treasuries weakened and the US dollar moved higher.
GREECE: Talks between domestic authorities and the technical teams of the four institutions (i.e. EC, ECB, IMF and ESM) on a new 3-year ESM loan facility continue in Athens, with the main issues reportedly being the simplification of licensing for manufacturing companies, the privatization programme including the privatization of the electricity transmission network operator (ADMIE), tax and fiscal related issues, a potential new round of bank stress tests, the evolution of non-performing loans (NPLs), labor and social security reforms, product market reforms and the opening up of the so-called closed professions.
SOUTH EASTERN EUROPE
CESEE MARKETS: Taking their cue from gains in major global bourses on Wednesday favoured by upbeat corporate earnings results, emerging stock markets moved broadly higher yesterday. On the flipside, regional currencies treaded water and government bonds were mixed ahead of the FOMC meeting announcement.
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