Dr. Platon Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A.,
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Oil prices remained under pressure on oversupply jitters. Brent crude moved below $46bbl for the first time so far this year, initiating a bull flattening on the UST and the Bund yield curve. In FX markets, GBP remained under pressure as UK political uncertainty remains elevated with several news sources suggesting that Tories and Northern Ireland’s DUP are still yet to reach an agreement for the formation of a minority Conservative government. Focus today is on the Queen’s Speech (state opening of a new parliamentary session) where Queen Elizabeth II will read out the UK government’s new legislative program (12:30 CET).
GREECE: According to a European Commission draft compliance report leaked to press, ESM loan disbursements up to the end (August 2018) of Greece’s 3rd Economic Adjustment Programme, will reportedly have allowed for the built-up of a cash buffer of c. €9 billion but, according to the report, this will not be adequate to regain the trust of investors without additional debt relief. The report concludes that “additional debt-mitigating measures” will be needed even under the baseline scenario.
SOUTH EASTERN EUROPE
CYPRUS: Cyprus’s Public Debt Management Office (PDMO) sold on Tuesday an offered amount of €850mn of 7-year government bonds as part of its €9bn Euro Medium Term Note (EMTN) programme.
Viewers can log herebelow and read the full report: Daily Overview June 21 2017
