WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: German government bonds firmed in European trade on Tuesday on the aftermath of explosions in Brussels airport and a metro station in the centre of the Belgian capital. Elsewhere, the majority of European bourses were weaker in early trade on Tuesday while the US dollar firmed across the board following hawkish comments by a number of FOMC officials.
GREECE: Speaking at an event with his French counterpart yesterday, Germany’s finance minister Wolfgang Schaeuble said that the implementation of the social security pension reform in Greece “is difficult” and it is likely that there will be no majority in the Hellenic Parliament to approve a further cut in main pensions. Meanwhile, after meeting yesterday EU Commissioner for Migration, Home Affairs and Citizenship Dimitris Avramopoulos, Greece’s Prime Minister Alexis Tsipras described the recently struck EU-Turkey agreement as positive acknowledging though that its implementation will not be an easy task.
SOUTH EASTERN EUROPE
CESEE MARKETS: Emerging stock markets moved broadly lower in European trade on Tuesday as their recent rally ran out of steam. Explosions in Brussels earlier today and hawkish comments by Fed officials yesterday suggesting that the next rate hike may materialize as soon as April also weighed on investor sentiment towards risky assets. In a similar vein, regional currencies recoiled and government bonds broadly weakened. Today’s focus in on Hungary’s Central Bank meeting (announcement anticipated at 13:00 GMT), where the market’s median forecast is for the MPC to stay put on its monetary policy and maintain the key policy rate at the current record low of 1.35%.
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