WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: UK CPI inflation for August surprised to the upside with the headline rising to a higher than expected 2.9%YoY from 2.6%YoY in July mainly on the back of a sharp increase in clothes prices and motor fuels. Core inflation also rose to 2.7%YoY from 2.4%YoY, the highest since late 2011. In reaction to the above, the GBP firmed across the board testing levels above 1.3300 against the USD earlier today for the first time in a year while the EUR/GBP moved slightly below 0.9000, marking the lowest level in nearly 1 ½ month. Meanwhile, UK Gilts came under pressure with the 10-yr yield rising to 1.14%, the highest in around six weeks. Focus today is on UK employment data which are expected to show acceleration in the average weekly earnings growth to 2.5%YoY in the three months to July.
GREECE: The completion of the sale of TRAINOSE to Ferrovie dello Stato Italiane S.p.A. for EUR45million is reportedly expected to take place tomorrow. With regard to the Hellinikon project, the release of the Presidential Decree that will ratify the Integrated Development Plan – one of the pre-requisites for the start of construction works – is being delayed.
SOUTH EASTERN EUROPE
CESEE MARKETS: CESEE assets traded mixed earlier on Wednesday, with the majority of regional stock markets moving timidly higher, while currencies modestly weakened.
Viewers can log herebelow and read the full report: Daily Overview September 13 2017