WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Major currency pairs consolidated within recent ranges in early European trade on Tuesday amid investors’ reluctance to establish fresh sizable positions ahead of the BoJ and Fed monetary policy meetings that both conclude on Wednesday. Fed Funds futures currently assign a probability of 13% for a 25bps rate hike while recent comments from a number of Fed officials revealed a considerable divergence in their views about the Fed’s near term policy deliberations. Meanwhile, the BoJ is anticipated to proceed with a cut in the deposit facility rate further into negative territory and adjust the breakdown of bond purchases to mitigate the impact of negative rates on financial institutions.
GREECE: The Bank of Greece data on the Balance of Payments (BoP) in July 2016 show a surplus of €1.4bn decreased by 43%YoY mainly due a deterioration in the deficit of goods excluding oil and ships which was €1.0bn, more than double compared to July 2015 when a significant drop in exports had occurred as a result of the capital controls which had been imposed at the end of June 2015. According to the Hellenic Statistical Authority, the overall turnover index in industry in July 2016 recorded a decrease of 5.9% YoY.
SOUTH EASTERN EUROPE
ROMANIA: The finance ministry sold at an auction on Monday the planned RON 500mn (~€112.4mn) of 2020 Treasury bonds at an average accepted yield of 1.80%.
CESE MARKETS: Emerging market assets were mixed earlier on Tuesday, trading in a consolidation mode as investor caution prevails ahead of the much anticipated FOMC and BoJ meeting decisions tomorrow.
Viewers can read the full report herebelow: Daily Overview September 20 2016