Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: According to a flash estimate from Eurostat, euro area annual inflation for December came in weaker than expected, supporting the view of further ECB monetary stimulus in the months ahead. Against this background, the EUR moved lower while German government bonds firmed also assisted by the lackluster performance of major European bourses amid heightened worries over the growth outlook of the Chinese economy, persistent weakness of commodity prices and escalating tensions in the Middle East.
GREECE: According to the local press, the Greek government sent to the institutions earlier this week an initial draft of the planned social security and pension reform. The government is reportedly planning to submit to Parliament by end-January the relevant bill with an intention to bring it for vote by February 5th. On the data front, the seasonally adjusted Markit Greece Manufacturing Purchasing Managers’ Index (PMI) improved in December 2015 for the fifth month in a row coming in at 50.2 from 48.1 in November, marking the first improvement in operating conditions in 16 months.
SOUTH EASTERN EUROPE
ROMANIA: The FX reserves stood at €32.2bn in December, up by €134mn compared to November.
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