HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Market focus today is on the FOMC policy announcement at 19:00 CET and the updated Summary of Economic projections, in particular the growth forecasts and interest rate projections (the “dots”). Market consensus is for a 25bps rate hike that would lift the federal funds target range to 1.50-1.75%. Awaiting the FOMC verdict, the USD was slightly weaker and core bond yields were higher on the day coming close to the upper end of recent ranges. Besides the FOMC policy announcement, markets today are eagerly awaiting UK employment related data especially on the back of increased expectations for a BoE rate hike in May following the EU/UK post-Brexit transitional deal earlier this week.
GREECE: In the privatisations front, the unsealing of the binding offers for DESFA, which were submitted on 16 February, will reportedly be further delayed. According to a CEPR report released yesterday on the Greek official debt, the current status quo with full set of potential debt-relief instruments’ scenario is not one where Greek debt is sustainable with high probability.
SOUTH EASTERN EUROPE
CESEE MARKETS: Emerging market assets traded mixed earlier on Wednesday ahead of the FOMC meeting announcement later on the day.
Viewers can log herebelow and read the full report: Daily Overview March 21 2018
