WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Global equity markets retreated from recent highs in European trade on Tuesday, USD extended its recent losses and US government bond yields remained in a downward trend amid increased uncertainty over whether the US administration will manage to implement key election promises including tax reforms and sizable infrastructure spending. Eurozone government bonds followed suit while euro area data suggesting persistently subdued inflation pressures also had an impact. Looking at the day ahead, focus is on UK June inflation data while in the US, the NAHB housing index for July is due for release along with June import prices. On the US corporate front, Bank of America, Goldman Sachs and IBM are among the companies that will report Q2 earnings today.
GREECE: The Greek government is reportedly planning to postpone, possibly for a few days, the issuance of a 5-year bond to raise c. €2 – €3 billion. It is reminded that the last time Greece tapped the markets was in April 2014. This week the IMF is expected to release its updated debt sustainability analysis &P will issue on Friday its updated sovereign credit rating review for Greece.
SOUTH EASTERN EUROPE
CESEE MARKETS: The majority of emerging market assets retained a firm tone earlier on Tuesday as the US dollar weakened on the back of mounting doubts over whether the US administration will be able to push through its pre-election promises.