Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The majority of Asian bourses closed in the black on Monday, following China central bank’s decision on Friday to cut its benchmark lending rate and reserve requirement ratio in order to boost Chinese economic activity. Dovish comments by ECB President Mario Draghi also favored.
GREECE: Preparation talks ahead of the inception of the 1st review of Greece’s new (3rd) adjustment concluded late last week with a number of key issues remaining open. According to the local press, some of the most contentious issues include the eligibility thresholds for the protection of primary residency from foreclosure and the VAT rate on private education. The institutions’ mission heads left Athens late last week and are reportedly expected to return shortly after the upcoming Eurogroup scheduled for November 9, with an intention the review to be completed swiftly.
SOUTH EASTERN EUROPE
CYPRUS: FITCH upgraded the sovereign rating of Cyprus by two notches (from B- to B+) with a positive outlook. The decision reflects the track record of fiscal consolidation and over-performance on its fiscal targets
ROMANIA: The EUR/RON remains relatively unchanged, staying the entire week in an extremely tight range between 4.4150/320, levels similar to August.
SERBIA: Despite the euro underperformance against most currencies worldwide on increased likelihood for a ECB QE extension, the EUR/RSD moved towards a 2-week high near 120.20/40 last week.
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Daily Overview October 26 2015
