Dr. Platon Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A.,
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Oil prices pulled further away from this week’s multi-month low although market sentiment remained fragile amid prevailing supply jitters. In reaction to higher oil prices, the UST and Bund yield curve steepened. In FX markets, oil-related currencies retained a firm tone while GBP was among the main outperformers following hawkish comments by BoE Kristin Forbes, one of the three dissenters in favour of a rate hike at the June monetary policy meeting. Looking at the day ahead, the most interesting data releases include the flash Markit June euro area PMI readings and US new home sales for May. Today, many Fed members are also scheduled to speak including Federal Reserve Governor Jerome Powell, St. Louis Fed President James Bullard and Cleveland Fed President Loretta Mester.
GREECE: According to press reports, the Supplemental Memorandum of Understanding (MoU) following the June 15th Eurogroup cites 83 prior actions that must be completed by end-September 2017 in the context of the 3rd programme review. These prior actions foresee measures in the following areas among others: 1) tax and fiscal, 2) labour, pensions and social welfare, 3) education, 4) product markets, OECD toolkits, 5) energy, and 6) justice. Among the privatisations’ related actions that need to be completed are: 1)the approval of the updated Asset Development Programme of the Hellenic Republic Asset Development Fund (HRADF) by the Government Council for Economic Policy (KYSOIP), 2) the internal rules of procedure of the Public Participations Company which will manage/monetize State Owned Enterprises and other shareholdings of the Greek State, 3) the appointment of Board members in all the subsidiaries of the Hellenic Corporation of Assets and Participations (HCAP) and 4) the launch of the tender for the sale of the 66% stake holding in the Hellenic Gas Transmission System Operator (DESFA).
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