Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Mirroring uncertainty as negotiations continue between Greece and the Institutions, Wall Street closed on negative ground and major European bourses were mixed in early trade. In FX markets, the JPY strengthened against the USD in view of increased risk aversion. On the data front, focus today is on the US real personal consumption growth in May, which is expected to have accelerated to 0.5%MoM sa from 0.0%MoM sa in the prior month.
GREECE: According to press reports, the Greek Prime Minister met yesterday for several hours with high-level EU officials and the heads of the institutions without, however, coming to an agreement. Talks resumed early this morning in view of a Eurogroup that is scheduled to convene today at 13:00 CET.
CYPRUS: The head of mission of the IMF for Cyprus, Mark Lewis, commented earlier in the week on a conference call on the occasion of the completion of the fifth, sixth and seventh review of the Cypriot programme, that official creditors will begin the 8th review of the program on July 14th.
SOUTH EASTERN EUROPE
ROMANIA: Parliament approved on Wednesday, the new fiscal code, including the latest amendment introduced by the opposition to reduce the main VAT rate by 1ppt more to 19% (vs. 24% currently).
SERBIA: The Public Debt Administration sold at an auction on Wednesday the planned RSD10bn (equivalent to €0.08bn) in June 26, 2017 amortising Treasury bonds.
CESEE MARKETS: CESEE assets were mixed in early European trade on Thursday, as investor caution prevailed in view of ongoing negotiations between the Greek government and the Institutions.
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