WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Most Asian equity indices closed in the red on Friday led by commodity producers and a disappointing BoJ decision. European shares edged higher in early trade, with banking stocks among top outperformers on better-than-expected corporate earnings results. In FX markets, the USD/JPY plunged to a 2 ½ week low of 102.705 earlier today as BoJ’s modest monetary policy easing disappointed investors, after an initial spike at 105.75 right after the BoJ’s announcement. Elsewhere, the EUR/USD was trading 0.2% higher at 1.1094/95 in European trade at the time of writing, within distance from a two-week high of 1.1119 hit in the prior session. On the macro data front, today investors’ attention will turn to the advanced estimate for Q2 GDP for the Eurozone and the US, as well as on eurozone data on CPI and unemployment. In the US, University of Michigan Consumer Confidence and the Chicago Purchasing Managers Index are scheduled to be released, while market focus will centre on the results of the 2016 EU-wide bank stress test, which will be released by the EBA after the closing of European markets (22:00 CET).
GREECE: Total deposits and repos of non MFIs in MFIs in Greece (excluding BoG) increased on a monthly basis by €36.7 mn in June 2016.On the assets side of the balance sheet, credit to domestic non MFI residents by domestic MFIs (excluding BoG) decreased by €1.2 bn in June 2016. In the soft data front, the economic sentiment indicator in Greece rose to 90.9 units in July 2016 (89.7 in June 2016) reflecting an improvement in industry, services and retail trade.
SOUTH EASTERN EUROPE
CYPRUS: Confidence edged up in July in the aftermath of the Brexit vote in late June.
ROMANIA: The consolidated budget balance recorded a 0.5% of GDP deficit in the first six months of the year.
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