WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: US Treasury yields were modestly higher in European trade following comments by NY Fed President William Dudley that US inflation will gradually rise alongside wages as labour market conditions continue to improve. Turning to EU periphery, sovereign bonds retained a firm tone supported by pro-EU centrist Emmanuel Macron’s comfortable majority in French parliamentary elections while ECB President Mario Draghi’s recent comments suggesting that the Central Bank is in no hurry to exit its QE programme, also continued to have an impact. In FX markets, higher US Treasury yields supported USD while GBP weakened amid uncertainty over domestic politics and the UK government’s Brexit strategy as formal Brexit negotiations started on Monday.
GREECE: The Bank of Greece released today the balance of payments for April 2017. On an annual basis, the current account deficit almost halved coming in at -€461.7 million. According to the Hellenic Statistical Authority the overall turnover index in industry in April 2017 recorded an increase of 10.7%YoY compared to a decrease of -13.9%YoY that it had recorded in April 2016.
SOUTH EASTERN EUROPE
CYPRUS: According to media reports, Cyprus’s finance ministry is marketing a 7-year Eurobond under its €9bn Euro Medium Term Note (EMTN) programme.
CESEE MARKETS: CESEE stock markets traded water earlier on Tuesday after yesterday’s post-French-election rally. Elsewhere, regional currencies and government bonds were mixed, with the Hungarian forint trading little changed ahead of the conclusion of the MPC meeting later on the day.
Viewers can log herebelow and read the full report: Daily Overview June 20 2017