WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The GBP plunged to fresh lows earlier today amid increased market worries over a “hard’ Brexit scenario. Meanwhile, the USD retained a firm tone against all major currency peers ahead of today’s US non-farm payrolls report. In other news, oil prices remained well supported with Brent crude approaching year-to-date highs supported by falling US crude inventories and the tentative agreement at the OPEC meeting in late September for a cut in oil production. Besides the US employment report, market focus is on the 2016 annual meeting of the IMF and World Bank which commences today and will run through the weekend.
GREECE: The discussions and statements on the side of the IMF/World Bank 2016 Annual Meetings reveal that the differences between the Fund and the European institutions on Greek public debt remain irreconcilable and thus the Fund’s financial participation in the 3rd bailout programme for Greece is yet unclear. On the data front, according to the Hellenic Statistical Authority (ELSTAT) Labour Force Survey, the seasonally adjusted unemployment rate in July 2016 eased at 23.2% (against 23.4% in the previous month), with the number of employed increasing by 0.4%mom and the unemployed dropping by 0.5%mom.
SOUTH EASTERN EUROPE
ROMANIA: The finance ministry sold at an auction on Thursday RON 110.5mn (~€ 24.7mn) worth of 15-year T-bonds at an average accepted yield of 3.63%.
CESEE MARKETS: Emerging market assets were mixed earlier on Friday as caution prevailed ahead of a key US labor data release later on the day.
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