WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Major equity market indices traded near multi-year highs on Wednesday on growing optimism about the global economic outlook. Meanwhile, relief that Catalonia’s leader, Carles Puigdemont, put declaration of independence on hold to allow time for talks, also favored risk-on sentiment. In FX markets, the euro capitalized on easing political tensions over Catalonia, while strong macroeconomic data in the euro area also boosted investors’ confidence. Meanwhile, increasing concerns that President Trump’s public feud with influential fellow Republican Tennessee Senator Bob Corker could damage his impetus for a tax plan weighed on the US dollar.
GREECE: In its World Economic Outlook (WEO) report, October 2017, the IMF revised downwards its projections for Greece’s GDP annual growth to 1.8% for 2017 and 2.6% for 2018 (from 2.2% in 2017 and 2.7% in 2018 in its WEO, April 2017 report). The unemployment rate has been revised upwards to 22.3% in 2017 (from 22% in April) and to 20.7% in 2018 (from 20.2% in April). As regards the primary surplus, the IMF foresees it at 1.7% of GDP for 2017 and 2.2% of GDP for 2018, below the ESM programme targets of 1.75% and 3.5% of GDP respectively.
SOUTH EASTERN EUROPE
ROMANIA: Inflation accelerated in September entering within the lower bound of NBR’s target 2.5% ±1% interval. On the political front, Prime Minister Mihai Tudose reportedly said on Tuesday that the ruling Social Democratic Party (PSD) will decide on Thursday on whether to endorse a government reshuffle. In other news, Romania raised yesterday €1bn in a re-tap of its 2.375% April 2027 Eurobond.
Viewers can log herebelow and read the full report: Daily Overview October 11 2017