Dr. Platon Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A.,
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: In line with market expectations, Emmanuel Macron’s La République En Marche party and its ally centrist party MoDem won the French legislative elections securing 360 seats in the 577-seat National Assembly. Markets showed little reaction as the prospect of Emmanuel Macron’s party wining a commanding majority was already priced in. With the French elections out of the way, focus shifts to Brexit negotiations that are scheduled to start today.
GREECE: In spite of the agreement that was achieved at the June 15th Eurogroup, according to press reports there are still a few open items that need to be addressed, which pertain mainly to the privatisations programme. The EC Directorate General for Competition concluded that the Greek measures to support TRAINOSE are in line with EU state aid rules. As a result, the sale of the company to Ferrovie dello Stato Italiane S.p.A. can now be completed. The decision reportedly opens the way for the privatisation of the Hellenic Company for Rolling Stock Maintenance S.A. (EESSTY). Today EESSTY is 100% owned by the HRADF, which is planning to sell the whole of its shareholding.
SOUTH EASTERN EUROPE
BULGARIA: The local equity market staged a mixed performance last week. Meanwhile, the local sovereign debt and Eurobond markets ended little changed ahead of the upcoming treasury auction on Monday 19th for BGN 50mn in 4-year T-Notes.
SERBIA: Despite Central Bank intervention in the FX markets in order to halt the dinar’s upside momentum, the currency ended last week 0.35% stronger against the euro to close near a 1 ½-year high of 121.90 achieved earlier in the week.
Viewers can log herebelow and read the full report: Daily Overview June 19 2017
