Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Wall Street closed modestly higher on Friday as better-than-expected US producer prices upstaged the weaker US consumer sentiment index. Trailing mild gains in Wall Street on Friday, major European equity indices opened modestly higher today. Elsewhere, Chinese bourses recorded on Monday the biggest daily decline in the last three weeks as domestic macro-economic releases on Sunday added to concerns for a deepening economic slowdown in China. In FX markets, the US dollar eased modestly against its major currency peers ahead of the two-day FOMC monetary policy meeting that concludes on Thursday. On the data front, this week’s major releases include US retail sales, industrial production, consumer price inflation and several housing market indicators. Elsewhere, German ZEW survey for September and August HICP are due on Tuesday and Wednesday, respectively.
GREECE: Speaking in the press conference that followed the conclusion of the Eurogroup that took place on Friday, September 12, President Jeroen Dijssebloem said that euro area finance ministers were informed by their Greek counterpart that the caretaker government continues the preparatory work in order to avoid any significant delays in the review process after the formation of the new government. In other news, the leaders of the two largest parties SYRIZA and New Democracy, Alexis Tsipras and Evangelos Meimarakis respectively, will hold a televised debate at 21:00 local time today while a number of recent opinion polls continue to show that the outcome of the upcoming national ballot remains too close to call.
SOUTH EASTERN EUROPE
ROMANIA: Already in September, RON markets appear mired in the summer doldrums with trade activity remaining subdued, especially in FX. The EUR/RON drifted slightly lower last week, trading between 4.4120/4.4340 and closing around 4.4180 compared to last Friday’s settlement of 4.4315. Elsewhere, RON money market rates were little changed over the last few days, while investor interest was more evidenced in RON-denominated government bonds.
SERBIA: Consumer prices increased by 0.9%MoM in August, bringing the annual rate of increase to 2.1% from 1.0% in the prior month, in line with a market’s median forecast. In the FX markets, the EUR/RSD remained bound last week within its recent trading range of 120.00-121.00.
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Daily Overview September 14 2015
