Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The majority of global equity markets were weaker on Wednesday pressured by lower oil prices ahead of an OPEC meeting on Thursday as well as renewed concerns about the sustainability of the global economic recovery. The latest bout of risk aversion favored the safe-haven appeal of the JPY while the AUD was also among the main outperformers supported by positive domestic data. Looking at today’s calendar, the US manufacturing ISM for May and the release of the Fed’s Beige Book take cenre stage ahead of the key US non-farm payrolls report on Friday.
GREECE: According to the local press, the Greek government and official creditors have managed to edge closer to a compromise on most of the outstanding prior actions required to be fulfilled for the release of the next ESM loan tranche. The main stumbling block remains the request by official creditors for an amendment of the legislation related to the NPL resolution framework so that it applies also to NPLs collateralized with Greek State guarantees. A decision on the issue is likely to be reached on Thursday when the Euroworking Group meets ahead of the June 16th Eurogroup.
SOUTH EASTERN EUROPE
SERBIA:Â According to final data released yesterday by the Statistical Office of the Republic of Serbia, real GDP growth was confirmed at 3.5%YoY. This marks a significant acceleration from a 1.2%YoY increase a quarter earlier and compares with contraction of 1.8%YoY over the same period of 2015.
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