WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Worries over the prospects of the US tax reform bill prevailed in European trade on Monday. Taking their cue from Wall Street’s losses on Friday, the majority of Asian bourses ended lower on Monday while, on the flipside, European bourses opened modestly higher supported by solid Q3 earnings growth from around 80% of Eurozone companies that have already reported. The DXY index was standing 0.2% higher on the day but still not too far from Friday’s intraday multi-session lows. Elsewhere, the GBP was among the worst performing G10 currencies on a daily basis amid mounting concerns about the stability of the UK government. Meanwhile, Eurozone and US government bonds remained under pressure in European trade on Monday with investors keeping an eye on US October inflation data and the 2nd estimate of euro area Q3 GDP on Wednesday and Tuesday, respectively.
GREECE: According to press reports, the 3rd review of the 3rd Economic Adjustment programme is broadly on track and it can be successfully completed on a technical level in December 2017 with 95 out of the 113 total prior actions either completed or underway. The list of power generation units to be included in the market test has been reportedly agreed between the Public Power Corporation (PPC) and the EC DG Competition and will be announced this week. The 1st round in the elections of the leader of the new, under-formation centre-left political party took place yesterday with the participation of 210,264 voters. The two candidates that will re-compete in the next round (Sunday, 19 Nov) are Fofi Gennimata (42.5% in the 1st round) and Nikos Androulakis (25,1% in the 1st round).
SOUTH EASTERN EUROPE
BULGARIA: Bulgarian equities finished lower last week, while the majority of local currency bonds and Eurobonds were little changed.
SERBIA: Downward pressures on the EUR/RSD prevailed last week, with the pair repeatedly testing a key support level of 118.50. However, the dinar’s appreciation momentum was mitigated by several Central Bank interventions in the FX markets.
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