WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Major European bourses traded mixed in early trade on Tuesday while in FX markets, NZD and AUD were among the main underperformers amid increased expectations for further policy easing by the RBNZ and the RBA respectively in August.
GREECE: The EU Commissioner for Economic and Financial affairs, Pierre Moscovici urged the Greek government to proceed without delay with the implementation of the prior actions due by September 2016 for the release of the €2.8billion sub-tranche as well as those related to the 2nd review so that the latter can be completed by early November 2016 at the latest. The institutions approved yesterday a bundle of measures proposed by the Bank of Greece for the relaxation of capital controls.
SOUTH EASTERN EUROPE
CESEE MARKETS: Emerging market assets broadly recoiled earlier on Tuesday as their recent rally seems to have run out of steam, while Brexit jitters, worries over China’s growth outlook and domestic political tensions in Turkey weighed on investor sentiment. A decline in global oil prices pressured additionally energy-related shares. CESEE bourses and currencies were little changed while government bonds were mixed earlier on Tuesday. In other news, Cyprus is reportedly marketing a €1bn 7-year EUR denominated benchmark bond. Books are currently open and initial price guidance is considered at a yield of 4.0%, according to media reports. Elsewhere, the EU opened two more of the total 35 chapters on Serbia’s accession yesterday, namely, Chapter 23 on the judiciary and fundamental rights and Chapter 24 on justice, freedom and security.
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