WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Wall Street rebounded overnight after three consecutive negative sessions, on speculation for a limited economic impact from Friday’s terrorist attacks in Paris. Mirroring the positive tone in the US equity market, most Asian bourses closed in the black on Tuesday, while major European equities opened higher. In FX markets, the dollar strengthened against its major currency peers as investors’ focus turned from the attacks in Paris to increased expectations for a fed funds rate hike in December. On the US data front, focus today is on the CPI and industrial production for October, while the November National Association of Home Builders Index is also expected to lure market attention.
GREECE: An agreement was reached early this morning between Greece and the institutions while the Greek Finance Minister Euclic Tsakalotos was quoted saying: “We have an agreement on all 48 milestones”. According to press reports, the next steps for the current week are as follows: 1) the Euro Working Group (EWG) will convene today to ratify the agreement, 2) a multi-bill containing all agreed measures will go through the Greek Parliament on Thursday, and, 3) the EWG will convene anew on Friday to ratify the voting of the multi-bill.
SOUTH EASTERN EUROPE
BULGARIA: The current account recorded a surplus of €182.7mn in September 2015, up from €80.9mn in September 2014.
CYPRUS: Cyprus recorded the highest annual deflation rate in EU-28 in October, with HICP coming in at -1.8% vs. -1.9% in September. HICP remained negative for the 11th consecutive month, largely on the back of falling global commodity prices. In other news, the Cypriot government reached on Monday a staff-level agreement with the teams of international creditors on the requirements to conclude the 9th review of the country’s programme.
ROMANIA: The Ministry of Finance sold on Monday the planned RON 500mn (€113mn) of 2021 Treasury bonds at an average accepted yield of 2.63%, 9bps below that achieved at a prior auction of same maturity paper held in October.
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