WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: With the weaker than expected US’ August non-farm payrolls report continuing to have an impact on market sentiment, major European bourses retained a positive tone in early trade on Tuesday. The USD was slightly weaker, US Treasury yields moved higher with short-dates notes outperforming on the prevailing market view that the Fed will not rush to deliver another rate hike any time soon.
GREECE: In spite of concerns reportedly raised by European officials with regard to the progress made in the remaining prior actions, Greek officials appear reassuring that the programme implementation is on track.
SOUTH EASTERN EUROPE
ROMANIA: The revised estimate of the Statistical Service on the seasonally adjusted Q2-2016 GDP reading confirmed the flash estimate of +1.5% QoQ/+5.9% YoY.
CESEE MARKETS: The majority of emerging stock markets rose earlier on Tuesday continuing to receive support from scaled back expectations for a Fed rate hike in the imminent future after a soft US non-farm payrolls report released last week. A recovery in commodity prices also favored, providing an additional lift on related shares. Elsewhere, regional currencies mostly retained a firm tone against a weaker US dollar and government bonds were mixed earlier on Tuesday. Today’s calendar was dominated by Romania’s and Hungary’s Q2 GDP data breakdown, both confirmed at the flash reading of 6.0%YoY and 2.6%YoY, respectively. Additionally, Poland’s two-day monetary policy meeting starts later on Tuesday.
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