WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Taking their lead from the positive tone in Asia earlier today, major European bourses opened higher on Tuesdaysupported by stronger than expected data from China and modestly higher oil prices. Increased risk appetite and positive US data dented the safe-haven appeal of US Treasuries with the 2/10-yr yield spread widening to the highest level since mid-May. In FX markets, the AUD was among the main outperformers supported by China’s positive data and the lack of an explicit easing bias in the RBA statement released earlier today after the conclusion of the monetary policy meeting.
GREECE: Talks from a distance in the context of the 2nd programme review are ongoing between Greek officials and the institutions, with the Budget 2017 holding centre stage as it has to be tabled to Parliament by November 21st. The Q3 report of the Parliamentary Budget Office released yesterday, foresees 2016 GDP growth -0.3% due to subdued exports in H1 2016, anaemic private consumption and private investments which are, however, partly counterbalanced by increased public investments. Economic sentiment in October 2016 rose to its highest level of the past twelve months driven by stronger industry, services and consumer confidence whereas retail trade and construction confidence fell. Markit Greece Manufacturing PMI in October 2016 fell to a five – month low.
SOUTH EASTERN EUROPE
SERBIA: According to the flash estimate GDP expanded by +2.5% YoY in Q3-2016.
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