WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Wall Street edged modestly higher overnight, helped by a rebound in the oil sector on higher crude oil prices. US October vehicle sales which surged to a ten-year high of 18.12mn annualized units also had an impact. Mirroring the positive tone in US equity market, major Asian bourses surged on Wednesday. Investors’ stronger risk appetite pushed up 10-year U.S. Treasury yields and favored the US dollar. Separately, the common currency extended a decline for the second consecutive session following ECB President Draghi’s comments that concerns over the external environment are creating downside risks to the growth and inflation outlook, reiterating that the ECB will re-examine its monetary policy stance in December. On the US data front, focus today is on the October ISM Non-Manufacturing Index, while in the euro area, the final October estimate for Markit PMI Services and Composite Indices and September producer price inflation also lures market attention.
GREECE: European Commissioner for Economic and Financial Affairs Pierre Moscovici met yesterday in Athens with Greek officials and, according to press reports, stated that by the November 9 Eurogroup, Greece must have completed the first set of prior actions in order for the next ESM loan installment of EUR 2 billion to be released. In other news, Eurobank will hold an Extraordinary General Meeting on Monday, November 16, to approve a share capital increase for a maximum amount of EUR 2, 122 million.
SOUTH EASTERN EUROPE
ROMANIA: Prime Minister Victor Ponta handed earlier today his resignation. On the data front, the retail sales reading impressed in September, with the corresponding index expanding at the highest annual rate in seven years.
SERBIA: Minister of Finance Dusan Vujovic was quoted as saying by local media on Tuesday that the government plans to finalise the 2016 budget draft by end-November, with Parliament due to start debates mid-December. The FinMin added that the January-October deficit stands below RSD 40bn, with the full-year shortfall not expected to exceed RSD 80bn.
CESEE MARKETS: Trailing gains in major global bourses the majority of emerging stock markets rallied in early European trade on Wednesday, thanks to firmer energy equity amid an overnight rise in oil prices. In line with their emerging market peers, most CESEE stock markets stood in the black earlier today, with Hungary’s main BUX index leading the way higher with a 1.3% advance. In FX markets, CESEE currencies were mixed, broadly trading on domestic fundamentals. Poland’s MPC meeting takes centre stage in CESEE today.
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