WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Mirroring the positive tone in Wall Street overnight, most Asian equity indices firmed on Thursday, while major European bourses opened modestly higher. The hawkish shift in short-term Fed rate hike expectations led the 2yr US note yield to a four-month high of 0.857% yesterday. In FX markets, the EUR/USD consolidated around levels of 1.1200, supported by higher European bond yields following recent rumors suggesting that the ECB would gradually cut down its €80bn monthly asset purchases volume before the official end of the programme in March 2017. Today’s calendar includes ECB September 8 meeting minutes and a speech by ECB board member Praet in N.Y, which are expected to be watched closely.
GREECE: According to the General Government data for January to August 2016 that were published yesterday, General Government Arrears to third parties (including tax arrears which remained almost stable at €1.34 on a monthly basis) were at €6.26 bn from €6.89 bn at the end of July 2016, a decrease of €0.62 bn. According to the Ministry of Economy, Development and Tourism, the new Investment Law is expected to be activated on October 12th. The Hellenic Republic Asset Development Fund (TAIPED) kicked-off the procedure for the Concession of “Egnatia Odos” Motorway and the three Vertical Axes.
SOUTH EASTERN EUROPE
CESEE MARKETS: Emerging market assets ended mixed on Wednesday amid concerns that the ECB may proceed with a tapering of its QE programme. Vindicating market expectations, Poland’s Central Bank stayed put on its monetary policy maintaining the key policy (reference) rate at the current record low of 1.50%.
Viewers can log herebelow and read the full report: Daily Overview October 6 2016