Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: US non-farm payrolls rose by 151k in August, less than the 180k market consensus following an upwardly revised 275k gain in the prior month. Though the August headline came in lower than expected, we should not rush to rule out completely the prospect of a rate hike in the coming months. In response to the weaker than expected US employment report, the USD moved lower, major European bourses were firmer in early trade on Monday, US long-dated Treasury yields were slightly higher while short-dated US yields were little changed.
GREECE: The 9 September Eurogroup will discuss, among others, the current state of the macroeconomic adjustment programme to Greece and in particular, the implementation of the milestones and progress with arrears clearance as defined in the Eurogroup statement on Greece of 25 May as well as the next steps for the second review. Fitch Ratings affirmed Greece’s long-term foreign and local currency Issuer Default Ratings (IDRs) at ‘CCC’.
SOUTH EASTERN EUROPE
ROMANIA: The EUR/RON ended little changed last week, remaining bound within its recent trading range. On the money market, the recent small spike in short term rates related to month-end tax payments has already faded, with RON interest rates already falling back towards the Central Bank’s deposit facility rate of 0.25%. Government bonds kicked off the week on the back foot, in view of a large issuance calendar for September (RON 4.3bn) and caution ahead of the release of the US non-farm payrolls (NFP) last Friday and the upcoming Fed meeting.
SERBIA: The EUR/RSD remained mostly above 123.00 last week as the National bank of Serbia (NBS) intervened in the FX markets in order to stem any further dinar appreciation.
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Daily Overview September 5 2016
