WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Trailing losses in Wall Street overnight European bourses broadly fell earlieron Wednesday and Asian stock markets closed mixed following hawkish comments by Fed officials yesterday. Against this backdrop, the US dollar recovered some ground against other major currency peers today. Focus today in on the release of the FOMC’s July 26-27 meeting minutes, while St. Louis Fed President James Bullard also speaks later on Wednesday. For the remainder of the week, jobless claims and Fed officials’ speeches also lure market attention in the US, while July’s inflation data on Thursday is among the most notable releases in the Eurozone.
SOUTH EASTERN EUROPE
SERBIA: The EUR/RSD remained trapped within a tight range over the last week or so despite abundant developments on the domestic macroeconomic and political radar.
CESEE MARKETS: Taking their cue from losses incurred in major global bourses, emerging stock markets broadly fell earlier on Wednesday parring part of their recent gains as increased expectations for a Fed rate hike this year dented investor appetite towards risky assets. Regional currencies broadly recoiled against a stronger US dollar, while government bonds were mixed with paper of longer maturity underperforming. Looking into the remainder of the week, the CESEE calendar is mostly dominated by macroeconomic data releases and government bond auctions in Poland. That said, sovereign debt rating reviews by Moody’s for Romania and by Fitch for Turkey take centre stage on Friday.
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