Dr. Platon , Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A.,
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Major currency pairs were little changed on the day with the DXY on track for weekly gains to the tune of 1.0%, the highest in a week so far this year. The long-awaited release of the Trump’s tax reform plan late on Wednesday fueled market optimism over the US economy’s growth prospects while the latest US inflation data provided some support to the view that the earlier weakness is likely to prove transitory, clearing the way for the Fed –in line with the message the Fed Chair delivered in a speech at the NABE meeting in Cleveland on Tuesday– to raise interest rates by an additional 25bps in December. Turning to the fixed income market, UST and Bund yields remained close to recent highs as investors start repricing the so-called “reflation theme”. Focus today is on inflation data from the euro area and the US with surprises on either side having the potential to be major drivers for the EUR/USD and major government bonds in the coming sessions.
GREECE: Real GDP growth according to the Bank of Greece is expected at 1.7%, 2.4% and 2.8% in 2017, 2018 and 2019 respectively, conditional on the prompt and successful conclusion of the upcoming 3rd review of the ESM programme and the timely implementation of the privatization agenda.
SOUTH EASTERN EUROPE
CESEE MARKETS: Emerging market assets recouped part of their recent losses earlier on Friday as major global sovereign bond yields and the USD pulled back from recent highs reinforcing their high yield allure.
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