Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Wall Street closed in a negative territory on Friday following remarks from Fed officials that bolstered speculation for an increase in the federal funds rate as soon as next month. In this context, the majority of Asian equity markets kicked off the week on a negative footing, while most European bourses traded lower at the time of writing. Treasury yields rose at their highest level since June and the US dollar firmed, with the DXY dollar index advancing to a two-week high on Monday. On the US data front this week, July personal income on Monday, August CB consumer sentiment on Tuesday, August ISM manufacturing on Thursday and August employment report on Friday will take centre stage. In the euro area, August Economic Sentiment Indicator on Tuesday, August inflation data on Wednesday and August PMI manufacturing index on Thursday are also expected to lure market attention.
GREECE: The Euroworking Group (EWG) is scheduled to convene today ahead of the September 9th Eurogroup to assess the progress made with regard to the 15 prior actions for the disbursement of the €2.8bn ESM sub-tranche. According to the Bank of Greece, in July 2016 the annual growth rate of total bank credit extended to the domestic private sector stood at -1.6% from -2.0% in the previous month.
SOUTH EASTERN EUROPE
ROMANIA: After a short-lived spike to 4.4780 a week earlier, the EUR/RON moved back lower last week. On the money market, rates moved a few basis points higher on the back of corporate budget payments. RON government bonds remained well supported by international investors’ buying interest, but the yield curve ended little changed over the week.
SERBIA: The EUR/RSD remained bound within recent trading ranges, with volumes remaining particularly thin.
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