WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The US’ ISM-non manufacturing report for the month of August surprised negatively, prompting a dovish shift in Fed rate hike expectations. US Treasury yields dropped across the curve. European equity markets were firmer in early trade, the USD weakened and US Treasury yields dropped across the curve with short-dated notes outperforming. Looking at today’s calendar, the Fed’s Beige Book should be the main focus today.
GREECE: In an unofficial government committee meeting yesterday Greek Prime Minister Alexis Tsipras reportedly urged his ministers to speed up their efforts for the completion of all pending issues for the release of the next ESM sub-tranche (€2.8bn). According to Eurostat, Greece was the only economy among the EU28 member states with a negative annual real GDP growth rate (-0.9%) in 2016 Q2.
SOUTH EASTERN EUROPE
CESEE MARKETS: The majority of emerging market assets extended earlier on Wednesday a rally staged after August’s downbeat US non-farm payrolls report released last week. Looking into today’s CESEE calendar, Poland’s monetary policy meeting announcement later on Wednesday takes centre stage. The market’s median forecast is for the key policy rate to remain unchanged at the current record low level of 1.50%.
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