Daily Overview of Global Markets & the SEE Region (Monday, 29 July, 2019)
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Asian equity indices started the week on a soft note, with the Hang Seng and Kospi indices reporting heavy losses on Hong Kong’s continued local protests as well as South Korea’s weak earnings outlook. Adding to the above, industrial profits in China contracted by 3.1%YoY in June, fueling market concerns that a manufacturing slowdown amid trade war frictions will weigh on the economic growth outlook. In FX markets, the DXY dollar index surged to a 2-month high of 98.092 in European trade on Monday following better-than-expected US Q2 GDP data reported on Friday. Elsewhere, the GBP/USD was trading around a 28-month low of 1.2332 at the time of writing, following senior ministers’ comments on Sunday that the British government under the new Prime Minister Boris Johnson prepares the ground to leave the European Union on Oct. 31 without an agreement.
GREECE: According to ELSTAT’s quarterly non-financial sector accounts, the nominal disposable income of Greek households increased on an annual basis for an 8th quarter in a row in 2019Q1. However, the respective gross saving rate (gross saving / gross disposable income) remained on a negative territory, registering a value of -6.8% or -4.9% in terms of a 4 quarters moving average.
SOUTH EASTERN EUROPE
BULGARIA: The Blue chip Bulgarian SOFIX gained 0.25% to 584.03 points in the past week. Local and external bond yields registered small drops.
SERBIA: The EUR/RSD ended at 117.73/83 last week following the NBS intervention on Friday.
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