WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Although nonfarm payrolls increased by a lower-than-expected 156k in December, there was an upward revision of 19k for the prior two months, while the broader U-6 unemployment rate declined to a new nine-year low of 9.2%. Furthermore, average hourly earnings for all employees edged higher, rising 0.4%MoM and bringing its annual rate of growth to 2.9%, its highest rate since April 2009. Following signs of inflationary pressures in the US December employment report, the US dollar broke its two-day losing streak on Friday against its major currency peers, while the US 10-yr yield rose from 2.33% to 2.42% on the labor market data on Friday, and remained within distance around 2.40% in European trade on Monday. In the commodities markets, crude oil prices fell for the first time in four days on a stronger dollar and on growing concerns that OPEC production cuts could lead to an increase in North America’s oil output.
GREECE: Although it is yet unclear when the institutions’ technical staff are to return to Athens, deliberations in the context of Greece’s 2nd programme review are expected to intensify as of this week ahead of the January 12th Euroworking Group and the subsequent January 26th Eurogroup. According to press reports, government officials claim that almost all of the prior actions attached to the current review are complete and that, to a large extent, the conclusion of the review depends on the institutions bridging their differences regarding the primary surplus targets for 2018 and beyond.
SOUTH EASTERN EUROPE
CESEE MARKETS: Emerging market assets broadly kicked off the week on a negative footing against a stronger US dollar. Idiosyncratic factors were also at play, with the Turkish lira plummeting by more than 2% in early European trade to a new record low near 3.73/$.
Viewers can read herebelow the full report: Daily Overview January 9 2017