WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: In FX markets, the EUR/USD remained under pressure as President Mario Draghi’s dovish tone at last week’s ECB post-meeting press conference and increased market optimism on US President Donald Trump’s tax reform plan continued to weigh. Meanwhile, tensions in Spain are on the rise. German Bund yields remained on a downward trend while US Treasury yields also moved lower in European trade on market talk that Fed Governor Jerome Powell is the most likely US President’s choice for the new Fed Chair nominee. Looking at this week’s calendar, the main highlights in the US include Friday’s non-farm payrolls for October while the Fed’s two-day meeting, which concludes on Wednesday, is unlikely to be a market mover. In the Euro area focus is on Tuesday’s preliminary inflation data for October and the Q3 GDP flash estimate. In the UK, Thursday’s BoE meeting takes centre stage as the Central Bank is expected to deliver a rate hike for the first time in more than a decade.
GREECE: According to sources both from the Greek government and the institutions (EC/ECB/ESM/IMF), the 1st round of talks in the context of the 3rd programme review was conducted in a collaborative spirit in spite of delays in a number of prior actions and disaccord in various issues. The European Commission’s mission chief to Greece, Declan Costello, reportedly claimed during a briefing to EU ambassadors that the Greek government is cooperating with the institutions, the IMF has not raised any hindrances and the target is to have the review completed by year end.
SOUTH EASTERN EUROPE
BULGARIA: Bulgarian equities closed lower last week, while local currency bonds ended mixed and Eurobonds showed little change.
SERBIA: Following a short-lived recovery to a high of 119.50, the EUR/RSD resumed its down-move later last week.
Viewers can log herebelow and read the full report: Daily Overview October 30 2017