WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: China’s disappointing trade data raised fresh concerns about the growth outlook of the world’s second largest economy triggering a new wave of risk aversion. Against this background, European equity markets opened lower, perceived safe haven currencies strengthened and major government bond yields dropped. Looking at today’s calendar, focus is on US September import prices and initial jobless claims for the week ending October 8.
GREECE: Speaking to the European Parliament Economic and Monetary Affairs Committee yesterday, ECB Executive Board Member Benoit Coeure, noted that the ECB “is looking forward to a solution that can reassure markets, restore confidence in the dynamics of public debt, allow the full involvement of the IMF in the programme, which would enhance the programme’s credibility and restore market access for Greece ahead of the end of the programme in July 2018, without undermining the reform effort”. With regard to Greece’s inclusion in the ECB’s QE programme, Mr. Coeure reportedly noted that before any decisions are made more needs to be known regarding the debt relief measures and the way its sustainability will be secured. According to the Bank of Greece, the final data on the balance of travel services for the period January-June 2016 reveal a drop of 7.9% YoY
SOUTH EASTERN EUROPE
BULGARIA: Consumer prices declined by -0.5%MoM/-0.6% YoY in September down from 0.0% MoM/-0.3% YoY in August on renewed food prices drop.
SERBIA: Inflation pressures remained subdued in September in Serbia with annual CPI falling by 0.6% on a monthly basis and bringing the annual rate of increase to 0.6%. In other news, the IMF reportedly said it would start its 6th review on Serbia’s precautionary €1.2bn 3-year Stand-By Arrangement next week.
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