HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS:Â All eyes today are on the ECB monetary policy meeting with the decision scheduled to be announced at 13:45 CET and the press conference to commence at 14:30 CET. Market consensus is for unchanged interest rates while the key issues are whether President Mario Draghi will try to dispel recent market talk of early QE tapering and if he will provide hints of a possible extension of the asset purchases programme beyond March 2017 at the December policy meeting.
GREECE: With regard to the debt relief that is being considered for Greece, the IMF reportedly pushes for a specification of the medium- and long-term measures to be made as soon as possible so that they can be taken into account in the debt sustainability analysis, which will determine the Fund’s participation in the Greek programme. In other news, the Parliamentary Budget Office in its Report on the draft Budget 2017 released yesterday claims that the draft Budget 2017 is of an intensely recessionary character in the short run although a change in the economic climate due to the conclusion of the programme reviews may cancel out this effect.
SOUTH EASTERN EUROPE
CESEE MARKETS: Emerging Market assets staged a mixed performance earlier on Thursday, as caution prevailed ahead of today’s ECB meeting. In other news, the Serbian government sold a planned amount of €75mn of 15-year EUR-denominated T-bonds on Wednesday at an average accepted yield of 4.20%.
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Daily Overview October 20 2016