Daily Overview of Global Markets & the SEE Region (Tuesday, October 24, 2017)

Dr. Platon , Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A.,

HIGHLIGHTS

WORLD ECONOMIC & MARKET DEVELOPMENTS

GLOBAL MARKETS: The USD edged lower early on Tuesday as market attention turns to the candidate who will replace Fed Chair Janet Yellen when her term expires in early February 2018. Turning to government bonds, German Bund yields moved higher in European trade after positive euro area PMI data supported the view that the ECB will announce an  extension of the  QE programme at a reduced monthly pace of asset purchases at Thursday’s monetary policy meeting. In other news, the Catalan Parliament will meet on Thursday to discuss the Spanish government’s decision to invoke Article 155 of the Constitution while a day later, the Spanish Senate is expected to approve the measures aiming at taking control of Catalonia.

GREECE: The Greek government reportedly proceeded to the payment of state arrears in order to pave the way for the approval of the disbursement of the remaining EUR0.8 million sub-tranche from the 2^nd review. According to the Hellenic Statistical Authority (ELSTAT) amended fiscal data EDP2^nd notification for the period 2013 – 2016, the General Government primary surplus, in accordance with ESA 2010, is estimated at EUR6.4 billion or 3.7% of GDP (down from EUR6.9 billion or 3.9% of GDP estimated in the EDP 1^st notification). According to the Bank of Greece, for the period Jan-Aug 2017, the current account recorded a surplus of EUR 123.4 million, up from a deficit of –EUR211.0 million for the same period in 2016.

SOUTH EASTERN EUROPE

CESEE MARKETS: Romania’s Finance Ministry rejected yesterday all bids at a RON 300mn T-Notes auction due to high yield levels. Elsewhere, Serbia’s Public Debt Administration raised yesterday a planned amount of RSD 19.8bn via 7-year T-Notes. Looking into the remainder of the week, Central Bank meetings in Hungary on Tuesday and Turkey on Thursday take centre stage.

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Daily Overview October 24 2017