Daily Overview of Global Markets & the SEE Region (Friday, 31 May, 2019)
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Major European bourses were generally down in early trade today recording losses of around 1.0% at the time of writing, while US stock futures point to a lower opening amid increased trade war jitters. US President Donald Trump issued a statement yesterday threatening to impose a 5% tariff on all goods imported from Mexico, staring on 10 June, unless Mexico takes swift measures to curtail the flows of illegal immigrants into the US. USTs and German Bunds gained while in the EMU periphery, Italy’s sovereign bonds underperformed on increased political jitters. In FX markets, the JPY firmed favored by its safe-haven appeal, with the USD/JPY dropping to a three-month intraday low of 108.74 earlier today.
GREECE: According to the Hellenic Statistical Authority, the overall producer price index in industry (PPI) in April 2019 increased by 3.6%YoY (against an increase of 2.0%YoY in April 2018) and 1.2%MoM (against an increase of 2.0%MoM in April 2018).
SOUTH EASTERN EUROPE
CESEE MACRO & MARKET DEVELOPMENTS: The majority of emerging market assets posted modest gains in early European trade today despite the release of disappointing data in major emerging economies. The Chinese manufacturing PMI index for May came in at 49.4 from 50.1 in April, which is below the market estimate at 49.9 while Brazil’s economic activity took its first dip since 2016 as GDP in Q1-2019 contracted by 0.2% QoQ, compared to a marginal growth of 0.1% QoQ in Q4-2018. Elsewhere in the region, amid lack of market-driven news, markets were relatively quiet. Later today we anticipate Serbia’s final GDP print for Q1-2019.
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