Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The majority of Asian equity indices gained on Thursday closing near eight-month highs. In Europe, major equity bourses edged higher in early trade on better-than-expected corporate earnings along with mounting expectations for an interest rate cut by 25bps by the Bank of England later today. In FX markets, the JPY weakened on rising expectation for more monetary stimulus by the BoJ, with the USD/JPY rising to a three-week high of 105.75 earlier today. Elsewhere, the GBP/USD was trading 0.6% higher around levels of 1.3233/34 at the time of writing ahead of the BoE monetary policy meeting. On the US macro data front, jobless claims (initial and continuing) and producer price inflation for June are expected to lure market attention today.
GREECE: Speaking yesterday at the Athens Chamber of Commerce and Industry, BoG Governor Yannis Stournaras predicted positive GDP growth in H2 2016 and annual growth of 2.5% and 3.0% for 2017 and 2018 respectively while he spoke of a significant rise in revenue from indirect taxes as a result of an increase in electronic transactions.
SOUTH EASTERN EUROPE
ROMANIA: Industrial production, on a seasonally and working day adjusted basis, declined by 4.0%MoM/1.5% YoY in May16 from +2.1% MoM/+2.5% YoY in April16.
CESEE MARKETS: Emerging Market assets extended their recent rally earlier on Thursday on optimism that Central Banks around the globe will act if needed to stem a potential spillover impact from the Brexit vote.
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