Dr. Platon Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A.,
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: German Bunds retained a firm tone in European trade as recent comments by ECB President Mario Draghi suggesting that the Central Bank is not in a hurry to wind down its monetary stimulus, are still in investors’ ears. Gilts were also well supported while the GBP was under pressure amid increased political jitters ahead of the June 8th snap elections. According to a number of opinion polls released over the last few sessions, the Conservative Party’s lead over the Labour Party has narrowed to an average of 6bps from 20bps when snap elections were called earlier this month, raising doubts over whether UK Prime Minister Theresa May could deliver — as was initially thought — a landslide majority at the upcoming parliamentary elections. Looking at today’s calendar, focus is on the euro area preliminary May inflation readings while the US ADP employment report for May takes centre stage ahead of Friday’s non-farm payrolls report. In addition, the Fed will release its Beige Book (20:00 CET).
GREECE: Deliberations around the debt relief framework for Greece are ongoing in view of the June 15th Eurogroup. ECB’s Executive Board Member Benoit Coeure spoke at a conference today in favour of a solution on debt relief at the upcoming Eurogroup stating that: “being sufficiently clear on the measures today would help frontload many of the beneficial effects, in particular the rebuilding of confidence of both the international and domestic community in the ability of the Greek economy to return to a path of normality and stability”. Eurostat released yesterday the business and consumer survey results for May 2017 according to which the Economic Sentiment Indicator in Greece receded after two months of improvement to 93.2 index units (i.u.) from 94.9 i.u. in April.
Viewers can log herebelow and read the full report:Â Daily Overview May 31 2017
