Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Major European equity markets opened lower on Wednesday, US Treasuries weakened and the US dollar appreciated against the majority of its currency peers following a string of positive US data on Tuesday which triggered a hawkish shift in Fed rate hike expectations.
GREECE: An unnamed high level European official was quoted saying in local newswires that the goal of the May 24th Eurogroup is the approval of the compliance report for Greece’s 1st programme review as well as a political agreement on debt relief. However, according to a number of press reports, a divergence of views continues to exist between European creditors and the IMF on debt relief with the latter calling for imminent and drastic measures to secure debt sustainability.
SOUTH EASTERN EUROPE
SERBIA: In its first meeting after April’s general elections, the National Bank of Serbia (NBS) stayed put on its monetary policy yesterday for the third month running, maintaining the key benchmark rate at the record low level of 4.25%. The decision came against our and market expectations for a 25bps reduction.
CESEE MARKETS: The majority of emerging stock markets lost ground in early European trade on Wednesday, weighed down by an upward shift in Fed rate-tightening expectations. Regional currencies and government bonds also weakened earlier today in view of deteriorating global risk sentiment.
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