Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: US Treasuries retained a firm tone in early European trade on Friday following the outcome of this week’s Fed policy meeting (September 20th-21st) which reinforced expectations that any further rate tightening in 2017 and 2018 will be more gradually than earlier expected. Long-dated sovereign paper continued to outperform triggering some further bull steepening of the yield curve. In FX markets, the USD remained under pressure across the board.
GREECE: Greece’s PM Alexis Tsipras told Reuters in an interview that government revenues and tourism flows have been strong and that Greece could grow by 0.2% to 0.4% in 2016, significantly above Eurostat’s forecast for a -0.3% real GDP growth rate. Mr. Tsipras also appeared confident that the second programme review will be completed by the end of October. The multi-bill with the remaining legislative measures pertaining to the pending prior actions for the release of the €2.8bn sub-tranche is expected to be voted by the Hellenic Parliament on Tuesday, September 27th.
SOUTH EASTERN EUROPE
CYPRUS: According to the CBC data, the stock of non-performing facilities and total facilities contracted by €1bn and € 3.2bn respectively in Q2-2016.
CESEE MARKETS: A rally staged this week in emerging stock markets appeared to be running out of steam in early trade on Friday, as a decline in oil prices weighed on related shares and the US dollar recovered some of its recently lost ground. Along the same lines, most regional currencies and government bonds weakened modestly earlier today.
Viewers can log herebelow and read the full report: Daily Overview September 23 2016
