WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Taking their cue from overnight losses in US equity markets major Asian bourses closed in the red on Thursday. The post-OPEC drop in oil prices continued to weigh on risky assets, while yesterday’s JPY appreciation exerted a negative impact on Japanese export and health-care firms. In FX markets, the US dollar gained some ground. There is a quiet global data calendar today, with focus on the US initial jobless claims for the week ended on 5 December. On the monetary policy front, the BoE is expected to keep its base rate unchanged at a record low of 0.5% at today’s monetary policy meeting.
GREECE: Discussions between the Greek government and official creditors on the agreed set of 13 prior actions attached to the release of the next (pending) ESM loan installment are scheduled to resume today. A multi-bill incorporating the legislation required for the implementation of the agreed prior actions is reportedly expected to come for vote in the Hellenic Parliament by December 18th so as the €1bn loan installment to arrive in State coffers before the end of the year.
SOUTH EASTERN EUROPE
ROMANIA: According to the latest INSEE data, the trade of goods deficit widened to €879mn in October, up by 54.9%YoY bringing the cumulative deterioration at 31.6% in January-October.
CESEE MARKETS: The majority of emerging stock markets moved lower in European trade on Thursday, extending their recent downtrend ahead of next week’s Fed monetary policy meeting where US interest rates are anticipated to rise for the first time since 2006. CESEE currencies remained under pressure earlier today the ECB’s monetary easing decision last week that fell short of market expectations and the looming normalization of the Fed’s monetary policy continue to take a toll on sentiment towards regional assets. The MPC meeting in Serbia is amongst the main key events in the CESEE region today. The Central Bank is broadly anticipated to stay put on its monetary policy and maintain its key benchmark rate at the current record low of 4.50% ahead of the FOMC meeting next week.
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