Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: All eyes are on the FOMC’s two-day policy meeting that concludes later today. Though market consensus is for unchanged interest rates as the committee will probably await for more evidence about the growth prospects of the domestic economy, the updated staff economic projections, the FOMC participants’ assessment of the appropriate pace of monetary policy normalization and a news conference by Chair Janet Yellen, lure market attention.
GREECE: Official discussions in the context of Greece’s 1st programme review will continue today with the agenda focusing on the planned overhaul of the social security pension system. Meanwhile, the government and official creditors reportedly reached a preliminary agreement on the terms of setting up the new Privatization Fund, one of the prior actions attached to the review.
SOUTH EASTERN EUROPE
BULGARIA: The Republic of Bulgaria issued on Tuesday €1.994bn of 7-year and 12-year Eurobonds in a dual tranche auction.
ROMANIA: The NBR Governor, Mugur Isarescu, expressed yesterday his concerns over the prospects of the domestic economy saying that the risks to Romania’s economic stability have never been higher in the past twenty five years.
SERBIA: Serbia’s trade deficit narrowed by 18.1%YoY to €225.6mn in January as exports growth of 9.1%YoY to €849mn outpaced a 2.0%YoY concomitant rise to €1, 075mn in imports.
CESEE MARKETS: CESEE assets were little changed in early European trade on Wednesday as investor caution prevailed ahead of the conclusion of the two-day FOMC meeting later on the day.
