WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Global sovereign bond yields moved sharply higher and the EUR firmed after comments by the ECB President at the fourth annual ECB Forum on Central Banking in Portugal were perceived by market participants as a signal that the Central Bank is likely to start tapering its QE programme earlier than expected. Meanwhile, USD was weaker across the board following news that the Republican Senate Majority Leader decided to push off a vote on a healthcare bill to replace Obamacare until after Congress returns from the July 4threcess. The release of the IMF’s annual Article IV report on the US where the Fund revised downward its 2017 and 2018 GDP growth forecast, also weighed on USD. ECB President Mario Draghi will participate in a panel discussion with BoE Governor Mark Carney, BoJ Governor Haruhiko Kuroda and BoC Governor Stephen Poloz at the ECB Forum (15:30 CET).
GREECE: Speaking at a conference the Greek Alternate FinMIn George Chouliarakis reportedly stated that Greece needs to curb bureaucracy, reclaim ownership of the programme and step up its efforts regarding the implementation of the privatisations programme. The Budget Committee of the German Parliament is reportedly scheduled to vote today on the disbursement of the next ESM loan tranche of €8.5 billion to Greece. Moody’s upgraded the ratings of all Greek mortgage covered bonds to B3.
SOUTH EASTERN EUROPE
ROMANIA: The consolidated government balance in cash terms recorded a 2.5bn RON deficit in May 2017, the highest so far in the first five months of the year.
Viewers can log herebelow and read the full report: Daily Overview June 28 2017