WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Major European bourses were firmer in early trade while the USD was under pressure and US Treasury yields were a tad lower following the slightly less hawkish than expected tone of the minutes from May’s FOMC policy meeting. “Most” FOMC participants considered that an additional rate hike soon “would be appropriate”. However, they adopted a rather cautious stance judging that “it would be prudent to await additional evidence” indicating that the weak Q1 GDP print and the soft March inflation data had been transitory before taking another step in removing monetary policy accommodation. Focus today is on the OPEC meeting where oil producers are expected to extend the output-cut agreement for 9 months to March 2018.
GREECE: According to press reports the ESM put forward at the May 22nd Eurogroup a proposal comprising three scenarios for Greece based on different assumption on GDP and primary surplus targets beyond 2022 (until 2022 it has apparently been agreed that primary surpluses are to be kept at 3.5% of GDP). The issue of debt relief but also the completion of the 2nd programme review will be discussed anew at the June 8th Euroworking Group with the aim to preparing an agreement that could be sealed at the June 15th Eurogroup.
SOUTH EASTERN EUROPE
CESEE MARKETS: Emerging market assets gained ground earlier on Thursday after the release of the FOMC May minutes yesterday.
Viewers can log herebelow and read the full report: Daily Overview May 25 2017