WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Brent crude oil price rose on news that, aiming to address the oversupply problem, OPEC reached a preliminary agreement at yesterday’s meeting to limit output. Supported by higher oil-related shares major European equity markets were firmer in the early hours of today’s trading while German Bunds and US Treasuries weakened in European trade as increased appetite for risk taking dented their safe-haven appeal. OPEC’s tentative agreement to cut production, the first such decision in eight years, favored commodity-related currencies, with the CAD outperforming. Looking at today’s US calendar, focus is on the third estimate of Q2 GDP, initial jobless claims and August pending home sales.
GREECE: The Euroworking Group that is scheduled to convene today will discuss Greece’s compliance with the programme conditionality and, subject to a positive assessment, the October 10 Eurogroup will approve the release of the remaining €2.8bn sub-tranche. The three remaining prior actions will reportedly be closed by theOctober 10 Eurogroup. According to Eurostat’s Business and Consumer Survey results for September 2016, Economic Sentiment in Greece receded to 91.4 against 92.5 in August 2016.
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