Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The majority of European bourses were weaker in early trade on Monday pressured by lingering worries over the growth prospects of China. Yet, losses were limited so far amid increased expectations for further ECB policy stimulus following the unexpected move by the BoJ late last week to introduce a negative interest rate for the first time ever. In FX market, the JPY remained under pressure amid expectations for additional BoJ easing later this year. On the data front, focus this week is on the US’ January non-farm payrolls report due for release on Friday.
GREECE: The ECB/EC/IMF/ESM mission heads arrived in Athens over the weekend and they are reportedly expected to commence today official discussions with domestic authorities in the context of the 1st programme review. Reportedly, the review will be carried out in two phases. The first one is expected to last for 7-10 days and during this period the two sides will attempt to reach an agreement on which issues will be finally attached to the successful completion of the review. The mission heads will reportedly depart thereafter and will return for the completion of the review as soon as they are of the view that they are close to a compromise with Greek authorities on the agreed prior actions.
SOUTH EASTERN EUROPE
BULGARIA: The domestic equity market continued to consolidate at current levels last week, with some signs of a more substantial recovery evidenced only on Friday. Meanwhile, the sovereign yield curve remained nearly unchanged as interest was refocused on the primary market. On the other hand, Eurobonds appeared well supported over the last few days.
SERBIA: The dinar remained under pressure against the euro last week, with the EUR/RSD having reached a 1-year high at 123.30/50 at some point earlier in the week.
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Daily Overview February 1 2016
