.
Daily Overview of Global Markets & the SEE Region (Friday, 12 July, 2019)
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: In the second day of his semi-annual testimony before the Senate Banking Committee yesterday, Fed Chair Jerome Powell did not veer from the line he took a day earlier before the House Financial Services Committee, providing further support to the prevailing view that the Fed is prepared to act pre-emptively and cut interest rates at the upcoming 30-31 July meeting. In spite of Jerome Powell’s dovish tone in the second leg of his semi-annual testimony, US Treasury yields were off yesterday’s session lows, albeit still slightly lower on the day, somewhat hurt by subdued demand in yesterday’s $16bn in 30-yr bonds auction. Modestly higher-than-expected US inflation data may have also had an impact. In FX markets, the USD remained under some pressure. Looking at today’s calendar, DBRS will review Italy’s sovereign credit rating, while on the data front the highlight is Eurozone industrial output for May.
GREECE: The Public Debt Management Company reportedly plans tapping the markets for the third time this year with the issuance of a 7-year government bond with a view to raising €2.5bn at yield lower than 2%. According to ELSTAT, the seasonally adjusted unemployment rate in April 2019 was 17.6% compared to 19.8% in April 2018 and the upward revised 18.2% in March 2019.
SOUTH EASTERN EUROPE
SERBIA: At its meeting yesterday, the National Bank of Serbia (NBS) cut the key policy rate by 25bps to 2.75%. It is the first Key policy Rate (KPR) cut since April 2018.
Viewers can log herebelow and read the full report: Daily Overview JULY 12 2019
Find out more about our Economic Research and search for reports that may interest you.
