Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Market worries over the global growth outlook prevailed in European trade on Thursday with major European equity markets standing in negative territory in early trade and major government bonds retaining a firm tone. Looking at the calendar, the BoE meets today and is expected to stay put on its monetary policy. Market focus will be on the BoE Governor’s press conference and the updated BoE Inflation Report which is likely to show growth forecasts revised downward.
GREECE: The EuroWorking Group will convene later today to work on the technicalities of the contingency mechanism, one of core prior actions for the completion of the 1st programme review, as well as the modalities of debt relief before reporting back to the Eurogroup which is scheduled to meet on May 24th. In other news, according to local newswires the ECB is likely to consider the reintroduction of Greek waiver at the June 2ndmeeting conditional on the completion of the 1st programme review.
SOUTH EASTERN EUROPE
ROMANIA: Inflation edged lower to -0.15% MoM/-3.3% YoY in April vs. +0.1% MoM/-3.0% in March-a new historic low for the standards of Romania
CESEE MARKETS: The majority of emerging stock markets lost ground in early European trade on Thursday, trailing major global bourses lower amid weak corporate earning reports. Regional currencies were mixed. Today’s focus also lies on the upcoming April inflation data releases from Serbia and Poland.
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