WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Wall Street closed in the black overnight, with the energy sector leading the gains. Asian equity markets traded mixed on Tuesday, with Japan’s Nikkei 225 index rising on a weaker JPY. In FX markets, the DXY dollar index hit an 11-week-high earlier today on rising expectations for an interest rate hike by the Fed before the end of the year. Elsewhere, the GBP/USD was falling for a fourth day in a row in European trade on renewed “hard-Brexit” woes. The data calendar is fairly light today, with the German ZEW survey expected to take centre stage.
GREECE: The Eurogroup that convened yesterday approved the release of €1.1bn for debt servicing needs and postponed the release of the remaining €1.7bn for public sector arrears clearance for later in October when data on the clearance of net arrears until the end of September 2016 will have been collected. According to ELSTAT, CPI inflation in September 2016 was -1.0% against -1.7% in September 2015. In the twelve-month period from October 2015 to September 2016, compared with the period from October 2014 to September 2015, the annual average rate of change of the CPI was -0.9%. The Production Index in Industry (IPI) in August 2016 fell by 0.3%YoY while the seasonally adjusted IPI for the same month increased by 0.4%YoY.
SOUTH EASTERN EUROPE
ROMANIA: The finance ministry sold at an auction on Monday a planned amount of RON 600mn (~€ 133.8mn) worth of February 2020 T-bonds at an average accepted yield of 1.82%.
CESEE MARKETS: Emerging Market assets came under pressure earlier on Tuesday weighed down by increased expectations for a Fed rate hike this year.
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