WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Taking their cue from Wall Street’s positive tone in the prior session, the majority of European bourses were firmer in early trade on Monday. However, political turbulence around US President Donald Trump continues, with the DXY hovering not far from last week’s six-month low and close to levels that prevailed shortly before the November 8th, 2016 US Presidential elections. Looking at this week’s calendar, focus is on the US administration’s draft budget for the full fiscal year 2018 on Tuesday ahead of the minutes of the May 3rd FOMC meeting and the OPEC meeting on Wednesday. On the data front, euro zone’s PMI surveys on Wednesday and the second estimate of the US’ Q1 GDP on Friday, lure market attention.
GREECE: During the past weekend the institutions reportedly compiled the compliance report that is expected to verify that what was agreed at the preliminary technical agreement of May 2nd has indeed been legislated or otherwise carried out by the Greek authorities. Based on a positive compliance report the Euroworking Group today will give a positive opinion and the Eurogroup will then politically endorse the agreement. This does not, however, signify the end of the road for the disbursement of the next loan tranche, as this must be approved by a number of national Parliaments including the German one, which in turn requires the financial participation of the IMF in Greece’s bailout programme. Therefore, a solution on the debt relief framework is the next step but, it is reportedly unlikely that this will happen today.
SOUTH EASTERN EUROPE
BULGARIA: Bulgarian equities posted modest gains last week, while BGN and FX denominated bonds were little changed.
SERBIA: The EUR/RSD remained bound within a tight range of 122.95 and 123.20 over the last few days.
Viewers can log herebelow and read the full report: Daily Overview May 22 2017