WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Following the negative tone in Wall Street overnight, major Asian equity indices closed in the red on Tuesday ahead of the Fed’s two day monetary policy meeting on June 14-15 and amid growing concerns on the UK’s referendum on EU membership on June 23rd. Major global bond markets retained their positive tone, with the 10-yr Bund yield falling below zero for the first time on record earlier today. In FX markets, the JPY was among the main outperformers favored by its safe-haven appeal.
GREECE: With regard to the ESM loan €7.5bn sub-tranche that Greece expects to receive in the coming days, Klaus Regling, the Managing Director of the ESM stated that the cooperation with the Greek government is again productive and that there is a good chance that the ESM BoD will approve the disbursement when it convenes on June 16th.
SOUTH EASTERN EUROPE
SERBIA: The consumer price index rose by 0.1% on a monthly basis in May, bringing the annual rate of increase to 0.7%. The latter follows a 14-month low of 0.4%YoY recorded in April and remains well below the Central Bank tolerance target band of 4.0±1.5%.
CESEE MARKETS: The majority of emerging stock markets lost further ground on Tuesday, trailing losses in major global bourses as caution prevailed ahead of the FOMC meeting which concludes tomorrow and amid mounting Brexit worries in the way to the June 23rd referendum in the UK.
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