Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: US Treasury prices were higher in European trade on Monday favored by Wall Street’s lackluster performance in the prior session on market cautiousness ahead of the first US Presidential televised debate later today. In FX markets, the USD remained under pressure on the prevailing view that, in spite of the relatively hawkish tone of the September 21 monetary policy statement, the Fed will likely delay the next rate hike well beyond end-2016. Focus today is on ECB President Mario Draghi who will address the European Parliament.
GREECE: With regard to the progress made on the remaining open prior actions for the release of the €2.8 sub-tranche, according to press reports, the Greek government and the institutions have agreed on the nominations for the Supervisory Board of the new Privatisation Fund. Meanwhile, the multi-bill with the remaining legislative actions is expected to be voted by the Hellenic Parliamenttomorrow (Tuesday, September 27). The IMF published on Friday the preliminary findings of its Staff Concluding Statement of the 2016 Article IV Mission on Greece stressing the importance of more growth-friendly policies, better tax policies, further structural reforms, strengthening banks and granting debt relief.
SOUTH EASTERN EUROPE
ROMANIA: The EUR/RON ended little changed last week, remaining bound within a very tight range as has been the case since mid-August. On the money market, the short term RON interest rates remained close to the central bank’s deposit facility rate of 0.25%. Government bonds received support on the back of a dovish Fed meeting on Friday. However, actual yield movements have been rather small.
SERBIA: The EUR/RSD continued to trade in a tight range of 123.05-123.50 last week, with a move towards 123.05 proving short-lived amid expectations that the National Bank of Serbia (NBS) will intervene anew in the FX markets in order to cap the dinar’s uptrend.
Viewers can log herebelow and read the full report:Daily Overview September 26 2016
