WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Asian bourses closed in the red on Thursday, as macroeconomic data in China and Japan came in on the weak side, dulling demand for riskier assets. Elsewhere, the Reserve Bank of New Zealand (RBNZ) cut its benchmark rate by 25bps to 2.75% as expected, highlighting that more monetary easing may be needed in case China’s economy decelerates further. Trailing losses in Asian equity markets, European equity indices opened lower. In FX markets, the NZD fell more than 2.0% following New Zealand central bank’s decision for a rate cut.
GREECE: With just 10 days to go before the September 20th snap general elections, the leaders of the parties with parliamentary representation in the outgoing Parliament –aside from Golden Dawn- hold a televised debate yesterday, the first in the last six years. Former Prime Minister and SYRIZA leader Alexis Tsipras argued that the bailout agreement his government sealed with official creditors managed to secure crucial funds and stabilize the economy. On his part, ND leader Evangelos Meimarakis claimed that his party had been more honest with the Greek people than SYRIZA as it had not made promises it knew that it would not be able to fulfil such as the annulment of the MoU. A second debate will follow on September 14th with the participation of the leaders of the two biggest parties, SYRIZA and New Democracy.
SOUTH EASTERN EUROPE
CYPRUS: The Ministry of Finance made public the revised Memorandum of Understanding between the government and international creditors which emerged from the conclusion of the 7th review of the Cypriot Economic Adjustment Programme on a staff level.
ROMANIA: According to the latest data from the Statistical Office, the trade deficit widened to €3.93bn in the first seven months of the year up from €3.37bn in the same period last year.
CESEE MARKETS: Trailing losses in major global bourses, emerging stock markets reversed course on Thursday to stand in a broadly negative territory amid mounting global growth concerns. In the FX markets, CESEE currencies were little changed in early European trade with investor focus being primarily on the upcoming FOMC meeting next week. Focus today is on Serbia’s MPC meeting where we anticipate the NBS to maintain the benchmark interest rate at the current record low of 5.50%.
Viewers can read the full report herebelow: