Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: In FX markets, the USD was firmer across the board in European trade on Wednesday amid lingering expectations for higher Fed interest rates in the course of this year as Donald Trump’s proposals during his election campaign for significantly lower income and corporate taxes along with substantial investments in US infrastructure are expected to provide a boost to US economic growth. Elsewhere, long-dated US Treasury yields were mostly higher in response to firmer than expected US data. Along these lines, long-dated Bund yields remained in an upward trend on Wednesday for the second consecutive trading session in response to higher than expected inflation data from both Germany and France mainly on the back of higher oil prices.
GREECE: Press reports suggest that the government is aiming to have the 2nd programme review concluded by the end of February at the latest to facilitate Greece’s inclusion in the ECB’s QE programme by March. In other news, the seasonally adjusted manufacturing PMI rose to 49.3 in December from 48.3 in November, remaining though below the all-important 50.0 no-change mark for the fourth successive month.
SOUTH EASTERN EUROPE
CESEE MARKETS: The majority of emerging market assets modestly firmed earlier on Wednesday, on improved risk sentiment following upbeat macroeconomic data releases in several major countries around the globe.
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