Dr. Platon , Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A.,
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Market focus remains on developments in Catalonia following Sunday’s violence-marred independence referendum. Catalonia government announced that the unilateral declaration of independence will remain on hold awaiting the international community, primary the EU, to intervene on the state government’s behalf following the violent methods the latter employed on Sunday in an effort to prevent the independence referendum. Against this background, Spanish government bonds remained under pressure for the second consecutive session with the 10-yr yield rising to 1.7% in European trade on Tuesday, the highest since mid-July, with the spread against its German counterpart reaching a multi-month high. In FX markets, Catalonian jitters kept the EUR under pressure with the EUR/USD testing levels slightly below 1.1700 at some point earlier today for the first time in more than six weeks.
GREECE: The Euroworking Group President Thomas Wieser, stated in an interview that post-programme surveillance for Greece will be stricter than, for example, for Spain but expressed optimism that the next ten months (i.e. until the end of the programme in August 2018) will go by without surprises. The 20-year extension(from 2026 to 2046) of the concession of the Athens International Airport for EUR483.87 million was signed a couple of days ago. The Markit Manufacturing PMI in September stood at 52.8, up from 52.2 in August, which constitutes the fourth consecutive improvement and the highest level since June 2008.
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