WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The majority of global equity markets kicked off the week on a weaker note pressured by increased market uncertainty following Friday’s terrorist attacks in Paris. In FX markets, the JPY was among the main outperformers as the latest bout of risk aversion favored its safe-haven appeal.
GREECE: Negotiations between the Greek government and official creditors will reportedly continue later today as the two sides have not yet reached a compromise on certain issues, including the criteria for the protection of primary residence from foreclosure and the adoption of specific actions to facilitate NPL resolution. Eurogroup President Jeroen Dijsselbloem was quoted saying yesterday that “good progress” has been made between the Greek authorities and the institutions in discussions on the prior actions for the release of the next ESM loan installment and financial sector measures “that are essential for a successful recapitalization process”. The Eurogroup President added that “agreement has been reached on many issues” and the Euro Working Group will convene on Tuesday to evaluate whether Greece has met all pending prior actions for the unlocking of next ESM loan installment (€2bn) and the sub-tranche earmarked for bank recapitalization and resolution needs (€10bn).
SOUTH EASTERN EUROPE
BULGARIA: The economy picked up pace in Q3-2015, growing at the strongest annual rate since Q2-2011. The released flash estimate brings third quarter output performance at 2.9%YoY in Q3-2015 up from a revised 2.6%YoY in each Q1 & Q2-2015 (from 2.3% and 2.2% respectively).
ROMANIA: According to the flash Q3 GDP estimate, real GDP growth expanded by +1.4%QoQ up from a revised flat pace in Q2. On a yearly basis, real GDP growth came in at 3.6%YoY in Q3 (sa and nsa) slightly down from 3.8%YoY in Q2.
SERBIA: The EUR/RSD remained bound within 120.25/45 and 120.55/75, last week amid light trade volumes and key macroeconomic data and events domestically.
Viewers can read the full report herebelow: