WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Amid persisting expectations for further ECB monetary policy stimulus at the next policy meeting on December 3rd, the EUR remained under pressure against its major currency peers in early European trade today. Elsewhere, German government bonds retained a firm tone with the 2-yr yield marking a fresh intraday record low. On the data front, the main highlight today is the second estimate of US 3Q GDP, which is likely to be revised higher, as the inventory correction was probably less pronounced than initially estimated.
GREECE: In an official statement released after the conclusion of the November 23rd Eurogroup, euro area finance ministers welcomed the completion by the Greek authorities of the first set of milestones and the financial sector measures required for a successful bank recapitalization process. As per the same statement, the above development enabled the ESM Board of Directors to approve the disbursement of the €2bn loan installment to Greece.
SOUTH EASTERN EUROPE
ROMANIA: The finance ministry sold at an auction on Monday the planned amount of RON 500mn (~€112.5mn) of April 2019 T-Notes.
CESEE MARKETS: Trailing losses in Wall Street overnight as well as in major global bourses in Asia and Europe earlier today, the majority of emerging stock markets fell in European trade, with most extending this week’s downtrend on rising expectations that the Fed will deliver in December its first rate hike since 2006. The Turkish lira and government bonds led the losses in regional FX and government bond markets amid escalating geopolitical tensions in the region. CESEE focus today is on Turkey’s Central Bank monetary policy meeting, where the market’s median forecast is for stable interest rates.
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