WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The USD was stronger across the board in European trade on Monday and long-dated US Treasury yields remained close to recent multi-month highs following firmer than anticipated US data releases which supported expectations for a Fed rate hike by the end of this year. In terms of key events, focus this week on the third –and final- US Presidential debate on Wednesday ahead of Thursday’s ECB monetary policy meeting while on Friday DBRS is due to announce its revision on Portugal’s sovereign credit rating.
GREECE: The second programme review is scheduled to commence this week with the arrival of the institutions teams in Athens. Labour market reform is expected to be among the sticking issues of this review. According to the Memorandum of Understanding between Greece and its European partners, Greece is to design and implement a wide range of reforms in labour markets to ensure compliance with EU requirements and achieve European best practices particularly in the areas of collective bargaining, industrial action and collective dismissals. On the economic data front, the Greek Ministry of Finance published on Friday the preliminary data on budget execution, according to which – on a modified cash basis – Greece’s central government registered a primary budget surplus of €5.4 billion in the nine months to September, beating its target for a primary budget surplus of €1.9 billion.
SOUTH EASTERN EUROPE
BULGARIA: The domestic equity market ended little changed last week in the absence of any significant news and relevant triggers. A similar picture was witnessed in the local bond and Eurobonds markets.
ROMANIA: Market movements last week remained dominated by concerns over the bill that could impose the conversion of the CHF loans at historical FX rates, as Parliament postponed voting for this week.
SERBIA: Ongoing Central Bank (NBS) interventions last week held the EUR/RSD bound around 123.00/20. In other news, the Public Debt Administration sold late last week RSD 19.2bn (ca. €156mn) worth of 3Y RSD denominated bonds at an average accepted yield of 4.79%, 21 bps lower compared to the yield achieved on previous reopening (on August 11).
Viewers can log herebelow and read the full report: Daily Overview October 17 2016