WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Taking their cue from the improved tone in Asian bourses, the majority of European equity markets were firmer in early tradeon Tuesday amid expectations for further stimulus from the Chinese authorities to support the world’s second-largest economy. In spite of today’s improved tone, market sentiment towards equity markets is likely to remain fragile in the coming sessions as concerns about the growth prospects of the Chinese economy prevail. In addition, uncertainty over the pace of the Fed’s monetary policy tightening ahead prevails.
GREECE: Speaking to reporters yesterday, Greece’s Minister of Finance Euclid Tsakalotos said that the government is willing to discuss with the IMF the planned overhaul of the social security system as long as the latter is willing to conclude the relevant discussions “in a timely manner”. According to the most recent Bank of Greece data, the total amount of funding taken from the Eurosystem dropped in December for the sixth month in a row coming in at €107.51bn, €5.9bn lower compared to November.
SOUTH EASTERN EUROPE
BULGARIA: The current account deficit widened to €289.7mn in November from €68mn in October and €85.6mn in the same month a year earlier.
CESEE MARKETS: Trailing the up-move in Asian stock markets, emerging bourses recouped part of their recent losses on Tuesday, after slightly weaker than consensus economic growth data from China stirred hopes that domestic authorities may render further stimulus to prop up the slowing economy. In a similar vein, CESEE currencies also firmed earlier today.
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