WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Wall Street firmed overnight on higher biotechnology and commodity shares, with the S&P500 index closing at a 1½ month peak of 1995.83 points. Elsewhere, after a week-long break due to the Golden Week holiday, Chinese bourses surged on Thursday amid speculation that the Chinese authorities will announce more stimulus measures to support the economy. In FX markets, the USD moved lower against most of its major currency peers in European trade on Thursday ahead of the minutes from the September 16-17 FOMC meeting due later in the day. In view of a light data calendar today, US initial and continuing jobless claims will take centre stage, while Germany’s five leading economic institutes are due to present their outlook on the economy. Additionally, both the ECB and the Fed will release the minutes from their latest monetary policy meetings in September.
GREECE: According to the IMF Fiscal Monitor report published yesterday, additional measures worth c. €1.3bn are required for the period 2015-2016 for the fulfilment of the officially agreed fiscal targets./ The three-day long debate in the 300-seat Hellenic Parliament on the government’s programmatic statements concluded late yesterday with the government comfortably winning the vote of confidence. Speaking before Parliament, Greece’s Prime Minister Alexis Tsipras said that the government aims the 1st program review to conclude within the next month.
SOUTH EASTERN EUROPE
CESEE MARKETS: Emerging stock markets moved broadly lower in early European trade on Thursday with most indices trimming part of their recent gains on profit taking. In a similar vein, CESEE currencies and local currency denominated government bonds lost some ground earlier today. In external debt markets, Poland’s Ministry of Finance tapped on Wednesday international bond markets selling €1.75bn of 6-year treasury paper.
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