WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Risk off mode prevailed in Asia earlier today and in major European equity markets in early trading on the back of mounting worries over Deutsche Bank’s ability to withstand pending legal penalties. Lower oil prices on market skepticism over whether OPEC will finally proceed with a cut in oil production at the upcoming meeting on November 30, also had an impact. Increased risk aversion favored the safe-haven appeal of major government bonds while, in FX markets, the CHF was among the main outperformers. For the remainder of the day, the main data releases include US personal income & spending for August, September Chicago PMI and the final reading of UM consumer sentiment for September.
GREECE: The Euroworking Group that convened yesterday affirmed the progress made by the Greek side in fulfilling the 15 prior actions but will give the green light for the release of the €2.8bn sub-tranche once the few, still open issues have been settled as well. The draft budget for 2017 is expected to be tabled in Parliament on Monday(October 3rd) and will reportedly forecast GDP growth +2.7% for the coming year. According to data released by the Greek Tourism Confederation (SETE), international arrivals at Greece’s main airports in August 2016 were up by 6.4%yoy while year-to-date they increased by 6.5%yoy, reaching 11.7mn.
SOUTH EASTERN EUROPE
CESEE MARKETS: Emerging market assets were under pressure earlier on Friday as global risk sentiment soured on the back of increased concerns over the European banking sector’s outlook. A drop in oil prices today also affected negatively related shares, while domestic political noise in Poland and a referendum on migrant quota in Hungary on Sunday also had an impact.
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