WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Risk-off sentiment prevailed in European trade on market talk that North Korea may be preparing for a further missile test. European equity markets opened lower, government bonds retained a positive tone and the USD remained under selling pressure against the majority of its currency peers. Turning to today’s calendar, the Fed’s Beige Book is scheduled for release while on the macro front, US July trade balance and the August non-manufacturing ISM should be of particular interest. The BoC meets at 16:00 CET.
GREECE: According to press reports, during the meeting of Tuesday between the Greek FinMin Euclid Tsakalotos and the European Commissioner Pierre Moscovici it was agreed that the 3rd programme review will comprise 95 prior actions (out of the remaining 113 prior actions in total of the current economic adjustment programme). Dependence of the 4 systemic banks by the Eurosystem is steadily decreasing since June 2016, with ECB and ELA funding dropping to €15.8bn and €34.6bn respectively in July 2017 (from €16.3bn and €37.9bn respectively in June 2017). The French President Emmanuel Macron is scheduled to visit Greece tomorrow accompanied by a number of French entrepreneurs/investors who are reportedly interested in major privatisation projects as well as in energy and defense projects.
SOUTH EASTERN EUROPE
CESEE MARKETS: The majority of emerging market assets traded on the backfoot earlier on Wednesday amid lingering geopolitical tensions in the Korean peninsula. Meanwhile, caution also prevailed ahead of the ECB meeting tomorrow.
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