WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The ECB Minutes from the mid-January monetary policy meeting that were released yesterday, supported the view that a substantial degree of monetary accommodation is still warranted and, thus, talk of ECB tapering seems premature. Regarding the implementation of the APP programme, the ECB noted that “limited and temporary deviations” from the capital key purchases rule “were possible and inevitable”, and the Central Bank stands ready “to make further adaptions” to securities lending arrangements, if needed. EMU sovereign bonds reacted positively to the ECB January meeting minutes, with sovereign bond yields moving lower and sovereign debt spreads narrowing. In FX markets, the USD gained some ground supported by positive US data, remaining though below recent highs amid prevailing market uncertainty over the US administration’s trade policies as well as the timing and size of fiscal stimulus.
GREECE: According to its official agenda, the 20 February Eurogroup will take stock of the ongoing implementation of Greece’s macroeconomic adjustment programme focusing on plans to carry forward the second review of the programme. Based on recent press reports, the aim is to reach an in principle agreement that will allow the return of the institutions’ mission heads to Greece with a view to reaching a Staff Level Agreement in March.
Viewers can log herebelow and read the full report: Daily Overview February 17 2017