WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The EUR retained a firm tone in European trade on Monday supported by increased optimism over the prospects of the euro area economy and easing political jitters in Germany after the CDU/CSU Conservative Christian democratic political alliance reached an agreement with the Social Democrats (SPD) on Sunday to pursue a “grand coalition”. Supported by the USD’s broad-based weakness, the EUR/USD hit a fresh two-month high of 1.1957. Looking at this week’s calendar, focus is on the 2nd estimate of US Q3 GDP and the Fed’s Beige Book, both on Wednesday, while euro area inflation preliminary estimate for November is scheduled for Thursday. OPEC member states and up to 20 other oil producing countries will also meet on Thursday while the Senate’s Banking Committee will hold the confirmation hearing for the nomination of Jerome Powell to be the next chairman of the Fed.
GREECE: At the Euroworking Group that is scheduled to convene today the Greek government is expected to brief the European creditors on the progress of the 3rd programme review as well as the 2018 Budget, which is scheduled to be voted in Parliament on December 22nd. According to Greek and European sources, including ESM Managing Director Klaus Regling, a staff-level agreement at the December 4th Eurogroup is attainable while the formal closing of the review may take place at the January 22nd Eurogroup, opening the way for the disbursement of the next loan tranche in early 2018. The Governor of the Bank of Greece Yiannis Stournaras expressed the opinion that the stress tests for Greek banks will not result in the requirement for new capital increases.
SOUTH EASTERN EUROPE
BULGARIA: Bulgarian equities closed lower last week, while local currency and Eurobonds moved modestly.
SERBIA: The EURRSD remained bound within a 118.50 – 119.55 trading range in the past week
Viewers can log herebelow and read the full report: Daily Overview November 27 2017