Daily Overview of Global Markets & the SEE Region (Friday, July 31, 2015)

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

HIGHLIGHTS

GLOBAL MARKETS: Following a rather mixed picture of corporate earnings and a strong Q2 GDP report that added to the view that the Fed is closer to an interest rate hike this year, Wall Street ended broadly flat overnight. Elsewhere, most Asian bourses edged higher on Friday, but closed in negative territory for the month, while in Europe, major equity indices were trading mixed. In FX markets, the US dollar shed some of its yesterday’s gains recorded in the wake of the upbeat US GDP data.

GREECE: According to an IMF transcript of a conference call between an unnamed IMF official in Greece and unnamed Greek officials, the IMF will participate in the 3^rd bailout programme for Greece conditional on the achievement of medium term public debt sustainability and the implementation of a series of structural reforms. In other news, according to data released yesterday by the EC, the Economic Sentiment Indicator (ESI) was at ca 81.3 in July 2015 recording a -9.4 points MoM decline and a -21.8 points YoY decline. In addition, the Hellenic Statistical Authority published the May 2015 s.a. volume of retail trade index. The index was at 73.5, up by 3.8%YoY and 1.8%MoM.

CYPRUS: Economic Sentiment Index (ESI) fell by 3.8 points to 100.3 in July down from 104.1 in June and a twelve month high at 107.3 in April.

BULGARIA: The Economic Sentiment Index (ESI) eased to 103.9  in July after staying unchanged for two consecutive months in June and May at 104.4.

ROMANIA: The Economic Sentiment Index (ESI) expanded by 0.9 points further, up to 104.7 in July against 103.8 in June vs 101.8 last December.

CESEE MARKETS: The majority of emerging stock markets moved higher in early European trade on Friday, largely shrugging off Q2 GDP data from the US released in the prior session which reinforced expectations for higher Fed interest rates later in the year. Bucking the broadly positive trend in CESEE stock markets, most regional currencies eased earlier today, meanwhile, government bonds were mixed at the time of writing.

Viewers can read the full report herebelow:

Daily Overview July 31, 2015