WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Asian bourses closed in the black on Wednesday on a relief rally after plunging to 3-year lows yesterday. Trailing gains in Asian equity markets, major European stock indices opened significantly firmer in early trade, with the Stoxx600 index edging ca. 1.7% higher at the time of writing. In FX markets, demand for the safe-haven Japanese currency eased earlier today as global bourses rebounded after two days of losses. Focus today is on Fed Chair Janet Yellen’s and James Bullard’s opening remarks at the central bank’s annual Community Banking Research and Policy Conference, as well as Fed William Dudley’s speech at the Securities Industry and Financial Market Association’s Liquidity Forum. On the macroeconomic front today, euro area CPI for September and unemployment rate for August take centre stage, while in the US, ADP employment report and Chicago PMI index for September will likely be scrutinized by market participants.
GREECE: Speaking to reporters in Brussels yesterday, European Commission Vice President Valdis Dombrovskis was quoted saying that a key prerequisite for the successful conclusion of Greece’s 1st programme review is, inter alia, the completion of the bank recapitalisation. Elsewhere, the Economic Sentiment Indicator for Greece improved in September for the first time in the last seven months coming in at 83.1 from a near 6 ½ year low of 75.2 recorded in the prior month.
SOUTH EASTERN EUROPE
ROMANIA: A no confidence motion initiated by the main opposition National Liberal Party against the government of Prime Minister Ponta failed yesterday as the three parties comprising the ruling coalition, which enjoys parliamentary majority, abstained from the vote. On the macro front, the Economic Sentiment Index (ESI) remained flat on a monthly basis at 104.5 in September.
CESEE MARKETS: Tracking gains in Asian and European bourses earlier today, emerging stock marketssnapped a 2-session losing streak to stand broadly firmer at the time of writing. Despite the rebound sentiment remains fragile amid persisting China-related concerns, while caution prevails ahead of key data releases and events over the next few days. In a similar vein, CESEE currencies and government bonds were modestly firmer earlier today.