WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The initial risk-off reaction to Republican candidate Donald Trump’s presidential election victory in early Wednesday was significantly tempered in a period of just few hours, mostly due to the conciliatory tone the US President-elect adopted in his victory speech. Looking ahead, it would be premature to assess at this point whether today’s improved risk mode and USD gains have legs to go up further in the coming sessions/weeks. Uncertainty remains high as little is known about the US President-elect’s priorities. To this end, his upcoming speeches will be closely scrutinized by market participants, especially with respect to his policy priorities and the composition of his cabinet.
GREECE: With regard to the 2nd programme review, according to press reports the prior action concerning the legal framework for the out-of-court workout is being processed by the General Secretariat for Public Revenues in view of the forthcoming arrival of the ECB/IMF/ESM/EC mission heads to Athens on 14 November 2016. According to the European Commission Autumn 2016 Economic Forecast, for 2016, Greece’s real GDP is expected to mildly contract by 0.3% while economic recovery is expected to return strongly in 2017 with growth at 2.7% on account of the assumed gradual normalisation of the financial sector, which should lead to the gradual relaxation of capital controls over time.
SOUTH EASTERN EUROPE
CESEE MARKETS: Emerging market assets broadly recovered ground earlier on Thursday as risk sentiment improved a day after coming under selling pressure following news that nominee of the Republican Party Donald Trump unexpectedly proved to be the winner of Presidential elections in the US.
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