WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Mirroring the positive tone in Wall Street overnight, most Asian bourses closed in the black on Wednesday, while most European equity indices opened modestly higher. In FX markets, the US dollar was little changed against its major currency peers as investors are eagerly awaiting the FOMC policy announcement, with the DXY index hovering around levels of 98.169 at the time of writing, not far from a one-week high of 97.932 recorded yesterday. All eyes are on the FOMC meeting which concludes at 20:00 CET and is expected to decide an increase of 25bps in interest rates for the first time in almost 10 years.
GREECE: A multi-bill incorporating the relevant legislation required for the implementation of the 13 prior actions attached to the unlocking of the next (pending) ESM loan installment (€1bn) was approved by the Hellenic Parliament late yesterday, with the support of all 153 SYRIZA-ANEL coalition MPs (144+9). In other news, Greece’s ministry of finance released yesterday preliminary data on the State Budget execution on a modified cash basis for the period January-November 2015. The year-to-November Central Government budget recorded a €1, 236mn deficit, which compares with a targeted shortfall of €3, 001mn. In a similar vein, the primary balance (which excludes interest payments) recorded a surplus of €4.348bn, outperforming the €2, 651mn budget target and a surplus of €3, 566mn generated in January-November 2014.
SOUTH EASTERN EUROPE
CESEE MARKETS: Emerging stock markets closed broadly higher in European trade on Tuesday, trimming part of their recent losses as their recent selloff appeared to have been overstretched. In a similar vein, CESEE currencies firmed on Tuesdaythough market caution prevailed ahead of today’s FOMC meeting announcement.
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