WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: US Q3 GDP was revised upwards by three-tenths to 3.3% saar, the highest in three years mainly supported by a more positive assessment of business capex and a higher than previously estimated contribution to GDP growth of changes in inventories. The above positive development followed a string of firmer than expected US data over the last few sessions while hawkish comments by Fed Chair Janet Yellen and the release of the latest Beige Book supported market optimism over the growth prospects of the US economy. Meanwhile, the Senate has taken important steps this week toward the passage of the tax reform bill. In reaction to the above, UST yields remained in an upward trend across the board while core bond yields followed suit, shrugging off fresh geopolitical jitters from North Korea. Looking in the day ahead, focus is on the OPEC meeting while in Germany, President Frank-Walter Steinmeier will meet the party leaders of the CDU, the CSU and the SPD to discuss the formation of a new “grand coalition”. Date-wise, today’s key highlights include the US core PCE deflator for October.
GREECE: Following the successful GGB strip re-profiling where according to the Public Debt Management Agency (PDMA) preliminary data participation reached c. 85.76%, the Greek government is reportedly examining tapping the financial markets two or three times in 2018 and until the Economic Adjustment Programme expires in August 2018. As regards the 3rdprogramme review, the institutions’ heads discussed yesterday with the Minister of Administrative Reconstruction Olga Gerovasili the progress in changes in public administration and according to press reports, a staff-level agreement on these issues is already being prepared in spite of a number of technical difficulties. The completion of the alignment of property tax assessment zonal values with market prices has been reportedly postponed for March 2018 whereas as the deadline for the submission of binding offers for DESFA has been moved to January.
SOUTH EASTERN EUROPE
CYPRUS: Confidence rebounded further in October reaching a new pre-Lehman period peak.
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