Daily Overview of Global Markets & the SEE Region (Monday, 15 July, 2019)
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Notwithstanding Fed Chair Jerome Powell’s unambiguously dovish tone at his semi-annual testimony mid-last week, US Treasury yields continued to rise in early trade today, amid reduced expectations for an aggressive 50bps rate cut at the 30-31 July FOMC meeting following the firmer-than-expected US June core inflation report late last week. Along these lines, core European government bonds continued to rise, while better than expected Eurozone inflation data for May, have also had an impact. In FX markets, the AUD hit a 10-day high of 1.7035 against the USD earlier today favored by positive Chinese data. Elsewhere, the EUR/USD continued to hover around the middle of the 1.1200-1.1300 trading range, ahead of Tuesday’s vote in the European Parliament on whether to confirm German defense minister Ursula von der Leyen as the new president of the European Commission.
GREECE: According to the ECB supervisory banking statistics for Q1 2019, for Greece the total capital ratio is 15.51% (17.99% in the Euro area), the Tier 1 ratio 14.89% (15.59% in the Euro area) and the CET1 ratio 14.88% (14.34% in the Euro area). The non-performing loans ratio stands at 41.41%, the highest in the Euro area.
SOUTH EASTERN EUROPE
SERBIA: According to official statistical data released on Friday, inflation decelerated to 1.5% YoY in June from 2.2% YoY and 3.1% YoY in May and April respectively, reaching the lower bound of the National Bank of Serbia’s targeted corridor (3.0%±1.5pp).
BULGARIA: The main Bulgarian equity index SOFIX gained 0.5% on a weekly basis ending at 583.78 points on Friday, amid modest volume somewhat over EUR1.4mn.
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