WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Wall Street firmed overnight on better than expected US economic data. Taking solace from Wall Street gains, major Asian equity indices closed in the black on Wednesday and most European bourses joined the global equity rebound in the early trade. US Treasuries and EMU sovereign 10yr yields fell amid improved risk sentiment and better-than-expected economic releases, with the 10yr Spanish yield dropping by ca. 8 bps to 1.26% on Wednesday, the lowest level since April 2015. In FX markets, despite risk-on sentiment the Japanese yen strengthened on Wednesday, while the GBP/USD was hovering around levels of 1.3377/78 at the time of writing, above a 31-year low of 1.3122 hit on Monday. Market’s focus centres on the two-day EU Summit which concludes later in the day. On the data front, US personal income and spending for May are due later in the day, while, in the Euro area, Economic Sentiment Indicator for June will also be closely scrutinized by market participants.
GREECE: Pierre Moscovici, European Commissioner for Economic and Financial Affairs reportedly stated that the Greek economy is on the right track but a relaxation of the primary surplus target of 3.5% of GDP beyond 2018 should not be expected. On the immigration front, the European Council issued a statement yesterday, noting that crossings from Turkey to Greece have almost come to a halt and that the legislation adopted recently by Turkey, allows for the return of Syrian and other nationalities’ migrants to Turkey in accordance with the Asylum Procedures Directive.
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