Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Most Asian equity indices closed in the red on Tuesday, while major European bourses opened lower dragged down by losses in financial and commodity shares. Against this background, Bunds rose with the 10-yr yield dropping to -0.16%, not far from the historical low of -0.17% on 24 June following the UK’s vote to leave the EU. In FX markets, risk-off sentiment stoked demand for the perceived safe-haven Japanese currency today, while the GBP/USD came under renewed pressure amid lingering uncertainty and heightened expectations for further BoE policy stimulus in coming months to support the UK economy. Focus today is on US durable goods orders for May ahead of the more crucial US non-farm payrolls report due on Friday, while, in the Euro area, Markit PMI Services and Composite Indices (June final reading) and May retail sales are also expected to lure market attention.
GREECE: Speaking to a local TV station earlier this week, Greece’s Minister of Finance Euclid Tsakalotos said that the capital controls are in a continuous relaxation process adding that he does not expect them to be fully lifted before the completion of the 2nd programme review.
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