WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The USD was under pressure while US government bonds were firmer in European trade on Thursday following the release of the FOMC minutes which were perceived as more dovish than expected. In more detail, the minutes revealed that “many” committee members were in favor of a near-term rate hike but some expressed concerns that weakness in inflation may prove to be not just due to transitory factors. Looking at today’s calendar, focus is on the euro zone’s flash Markit manufacturing and service PMI readings for November, the minutes from the ECB’s October monetary policy meeting and the second estimate for UK Q3 2017 alongside the expenditure breakdown. Both US and Japanese markets are closed today due to national holidays.
GREECE: The 3rd programme review is at a critical point as, according to press reports, only around 30% of prior actions have only been completed, rendering the attainment of a staff-level agreement at the December 4 Eurogroup more difficult. For this purpose, the Greek PM Alexis Tsipras is reportedly planning to visit all competent ministries in order to put pressure towards accelerating the implementation of remaining items. The divestment from the Public Power Corporation’s lignite – fired production capacity remains among the stickiest issues.
SOUTH EASTERN EUROPE
ROMANIA: EU authorities address a second warning to Romanian authorities to correct excessive expansionary fiscal policies.
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