Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The majority of global equity markets kicked off the week on a firm tone supported by the G-20 Finance Ministers’ reassurance that they are determined “to use all policy tools –monetary, fiscal and structural- individually and collectively” to achieve the goal of “sustainable, balanced and inclusive growth” in view of lingering concerns over spillover effects from Brexit. Central bank meetings will be the focus of market attention this week. The Fed is widely expected to leave its monetary policy unchanged at the July 26 /27 policy meeting while market participants anticipate further policy easing by the BoJ at the July 28/29 meeting.
GREECE: Greek Minister of Finance Euclid Tsakalotos stated in an interview on Saturday that the primary surplus targets until 2018 are attainable and the government will not have to activate the automatic spending cuts mechanism. Beyond 2018 and in the medium term, however, the Greek government will pursue through negotiations primary surplus targets below 3.5% of GDP.
SOUTH EASTERN EUROPE
ROMANIA: The EURRON moved lower over the week, in line with regional peers, going from 4.4780 on the previous Friday to 4.4550 by market closing.
SERBIA: The EURRSD remained bound within a 123.00/20 – 123.50/70 trading range in the past week.
BULGARIA: Markets remained quiet in the past week amid lack of any relevant macroeconomic news in the country.
