WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The majority of European bourses were standing in negative territory in early trading on Thursday and the USD retained a firm tone following a recent flurry of relatively hawkish comments by a number of FOMC policymakers. The GBP remained under pressure amid heightened Brexit woes.
GREECE: In the context of the 1st programme review, the Greek government is expected to come up with additional revenues to cover a fiscal gap of 3% of GDP (i.e. around 5.5bn euro) over the period FY-2016 and FY-2018, which may come from an increase in the tax for diesel fuel, reductions in auxiliary pensions and changes in the income tax regime. According to provisional data released yesterday by the Bank of Greece, the balance of travel services recorded a surplus of 32 mil. euro in January 2016 compared to a surplus of 11 mil. euro in January 2015.
SOUTH EASTERN EUROPE
ROMANIA: Credit to the non-government sector continued recovering in February driven by the robust local currency dynamics.
CESEE MARKETS: The majority of emerging stock markets fell for the second day running earlier on Thursday, as commodity prices extendedWednesday’s decline. Recent hawkish comments by Fed officials also weighed on investor sentiment towards risky assets. Separately, most regional currencies recoiled earlier today in view of deteriorating risk sentiment. Yet, local currency government bonds were modestly firmer.
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