WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: European equity markets opened lower on Tuesday, the EUR came under some pressure and German Bunds firmed on market perception that the ECB is not in a hurry to wind down its monetary stimulus in spite of the ongoing improvement in the euro area economic recovery. A German press report suggesting that Greece may opt out of its next debt repayment in mid-July and increased expectations for snap elections in Italy later this year, also had an impact. For the remainder of the day, focus is on US data including personal income and spending for April and the CB’s consumer sentiment index for May.
GREECE: Speaking to foreign press, Greek Finance Minister Euclid Tsakalotos claimed that Greece had fulfilled its obligations in the context of the 2nd programme review and that it is now up to the country’s official lenders to see their part of the deal through. He added that investors are piling up “outside the door” in large numbers but are waiting for a clear roadmap as to how Greece’s debt will be rendered sustainable. Speaking before the EU Parliament Committee on Economic and Monetary Affairs, ECB President Mario Draghi stated that the ECB will not consider including Greece in the quantitative easing programme (QE) before the conclusion of the 2nd programme review and the country’s debt having been rendered sustainable. The 20-year extension of the concession of the Athens International Airport is to be signed in June and, according to government sources, it may yield more than €500 million.
SOUTH EASTERN EUROPE
CESEE MARKETS: Emerging market assets were mostly weaker earlier on Tuesday on deteriorating risk sentiment.
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