Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: In the strongest signal so far that the Fed could raise interest rates within the next couple of months, Chairman Janet Yellen said during a speech at Harvard University last Friday that a rate hike would probably be appropriate “in coming months” if US economic activity picks up momentum and the labor market continues to improve. Against this background, the US dollar was firmer across the board in European trade on Monday while US Treasury yields moved higher.
GREECE: Discussions between the Greek government and the technical teams representing official creditors will reportedly continue today in an effort to reach a compromise on all pending items required for the release of the next ESM loan tranche amounting to €7.5bn. Reportedly, as things stand at this point, a full agreement between the two sides on all pending items in time for the next ECB monetary policy meeting on June 2nd is considered rather uncertain. As per the same sources, the government aims for a consensus to have been reached by the end of the week hoping that this will not prevent the reintroduction of a Greek collateral waiver at the upcoming ECB meeting.
SOUTH EASTERN EUROPE
BULGARIA: Following National Holidays, the domestic equity market witnessed another week of low volatility and thin volume.
SERBIA: The EUR/RSD marched towards 123.40/60 last week without being confronted by a pullback.
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