WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Negotiations between the major political parties in Spain on how to jointly handle the Catalonian crisis continue. In the meantime, the leader of the regional government Carles Puigdemont stated publicly that they intend to unilaterally declare the independence of Catalonia in the coming days, a development that could force the Spanish government to invoke the article 155 of the Constitution for the first time in the country’s history. With the Catalonian issue continuing to have an impact on market sentiment, SPGBs remained under pressure in European trade on Wednesday, underperforming regional peers. Elsewhere, USTs yields moved slightly lower and the USD’s latest uptrend came to a halt on market uncertainty over the successor of Fed Chair Yellen whose term ends in February 2018. Looking at the remainder of the day, we await the ADP’s September payrolls report, which is considered a good indicator for Friday’s US non-farm payrolls survey.
GREECE: The electronic platform for the out-of-court workout – one of the main tools for the resolution of the NPLs problem – has been operating for two months now and during this period, 137 applications met the criteria and are moving to the mediation phase. With regard to the Hellinikon project, the Central Archaeological Council decided to declare 300 acres of land as a “site of archaeological interest”. The decision was met with discontent on behalf of the concessionaire who, nevertheless, refrained from assessing the extent to which this development affects the planned investment until all available information has been thoroughly studied.
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