Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Oil prices were lower in early European trade on market uncertainty over whether OPEC producers will manage to finalise at the November 30th meeting a preliminary agreement reached in September over an output production. Major European bourses were weaker in early trade, US Treasury yields moved lower and the USD was weaker across the board. After PM François Fillon won the second and final round of the center-right primary elections on Sunday, the next focus on the European political front turns to Italy, where the referendum on Constitutional reforms proposed by PM Matteo Renzi will be held on Sunday, December 4, in tandem with the repeated presidential election in Austria.
GREECE: The Euroworking Group that is scheduled to convene today is expected to assess the progress made in the fulfilment of the prior actions in the context of the 2nd programme review. According to press reports, key pending items remain unresolved particularly the labour market reform and the fiscal strategy mainly for the years 2019 and 2020. Nevertheless, officials from both the Greek side and the institutions claim that a political agreement on the December 5 Eurogroup is still possible.
SOUTH EASTERN EUROPE
BULGARIA:Â The domestic stock market regained ground last week as buying interest in blue chips offset domestic political concerns. Local and foreign currency sovereign bonds also firmed.
ROMANIA:Â RON markets stabilized over the previous week, after coming under pressure in the aftermath of the US elections.
SERBIA: A mixture of increased local EUR demand and a selloff in the domestic government bond market put pressure on the dinar last week. However, the bullish EUR/RSD momentum stalled after another Central Bank intervention in the FX markets aimed at mitigating depreciation pressures on the dinar. In other news, the EBRD is preparing to offer the first ever dinar denominated paper, a three year issue planned to be offered at a fixed price of Belibor plus 0.4% worth RSD 2.5bn (ca. €20mn).
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Daily Overview November 28 2016
