WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: US Treasuries weakened and the USD remained in an upward trend on the back of increased expectations for a Fed rate hike in December following a new string of hawkish Fed comments and firmer than expected US data. Looking at the day ahead, focus is on ECB President Mario Draghi who is scheduled to give a speech while BoE Governor Mark Carney will be questioned by the House of Lords Economic Affairs Committee about the economic consequences of Brexit referendum outcome and the BoE’s response. On the data front, major data releases include the US’ Conference Board consumer sentiment index for October.
GREECE: The Euroworking Group that convened yesterday politically approved the release of the remaining €1.7bn sub-tranche and, thus, today the ESM is expected to “greenlight” the disbursement of the whole amount of €2.8bn pending from the 1st programme review, which should arrive in state coffers by the end of the week. According to the Bank of Greece data, travel receipts in August 2016, continued their declining course shrinking by 9.2%YoY (against -3.5%YoY in July 2016 and +9.9%YoY in August 2015). This is mainly due to decreased average expenditure per trip by 11.6%YoY given that arrivals rose by 1.8%YoY.
SOUTH EASTERN EUROPE
CESEE MARKETS: Most emerging market assets lost ground earlier on Tuesday on mounting expectations for a Fed rate hike this year. In the local debt markets, the Romanian finance ministry sold on Monday a planned RON 500mn (~€111mn) amount worth of 2022 T-Bonds at an average accepted yield of 2.65%, 12bps higher compared to that achieved at a prior tender of the same paper held in late September. Looking into today’s calendar, the Central Bank meeting in Hungary takes centre stage.
Viewers can log herebelow and read the full report: Daily Overview October 25 2016