WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: US stocks closed slightly lower overnight, dragged down by the energy sector on lower crude oil prices. Elsewhere, Asian equity markets traded mixed on Thursday. In Europe, 10Y Spanish government bond yields rose by 6bps above 1% for the first time in three weeks after caretaking Prime Minister Mariano Rajoy lost a confidence vote in the Spanish parliament. In FX markets, the DXY dollar index was hovering near yesterday’s three-week high of 96.255 at the time of writing ahead of the closely watched US employment report due on Friday. Today’s US economic calendar includes the ISM manufacturing index for August and weekly jobless claims. In the euro area, the PMI manufacturing index for August will also lure market attention.
GREECE: According to ECB President Mario Draghi, at the moment there is no specific timeline regarding Greece’s inclusion in the ECB’s QE programme. In June 2016, the retail trade overall volume index dropped 3.6% YoY, while the seasonally adjusted overall volume index rose by 0.7% MoM. The seasonally adjusted Markit Manufacturing PMI for Greece rebounded to 50.4 in August 2016, up from 48.7 in July.
SOUTH EASTERN EUROPE
BULGARIA: Unemployment inched down to 7.9% in July compared to 9.2% a year ago.
CYPRUS: Unemployment declined to 11.4% in July down from 15.0% a year ago.
SERBIA: According to the latest quarterly national accounts data for Q2 2016 released yesterday, real GDP growth was revised modestly higher to 2.0%YoY from 1.8%YoY previously reported.
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