WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Major European equity markets were firmer in early trade favored by US President Donald Trump’s declaration about a “phenomenal tax plan” in the next two to three weeks, encouraging trade data from China, positive US Q4 corporate earnings results and firmer than expected US data. Increased risk appetite dented the safe-haven appeal of major government bonds. In FX markets, the USD gained some ground while the AUD was among the main G10 outperformers. Market focus today is on the two-day summit between the US President and Japan’s Prime Minister where currency policy is likely to be among the main issues of discussion.
GREECE: According to press reports, a senior European official said that European officials and the IMF have reached an agreement between themselves on a common stance on Greece. Later today the Greek FinMin Euclid Tsakalotos and high level executives from the official lenders (EC, ECB, ESM and IMF) are expected to meet to potentially reach a comprehensive agreement on the projected fiscal gap for 2018 as well as pension, tax, labour and energy market reforms in order for negotiations to resume and the 2nd programme review to close by the end of February.
SOUTH EASTERN EUROPE
CESEE MARKETS: Taking their cue from the rally in major global bourses, emerging stock markets moved broadly higher earlier on Friday on US President Trump’s forthcoming tax revamp plan. Better-than-expected data from China as well as the US and upbeat corporate earnings results also provided support to risk sentiment. Separately, regional currencies and government bonds were mixed.
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