Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Wall Street closed in the red on Friday, as the August non-farm payrolls report was rather mixed failing to contain market uncertainty about the timing of the first fed funds rate, especially in view of a thin US macro data calendar in the coming days. Elsewhere, most Asian markets are trading lower at the time of writing, while in FX markets, the EUR/USD consolidated around levels of 1.1150/55 in early European trade. On this week’s data front, investors will focus on the euro area Q2 GDP release (second estimate) due on Tuesday, while US initial jobless claims and University of Michigan consumer sentiment are scheduled for Thursday and Friday, respectively. Additionally, European Commission President Jean-Claude Juncker speaks to the European Parliament on Wednesday, while European Union finance ministers and central bankers hold an informal meeting in Luxembourg on September 11-12.
GREECE: According to the results of the majority of opinion polls published so far this month, SYRIZA leads over New Democracy with a narrow margin. Against this environment, a number of political commentators suggested that the September 20th election outcome remains too close to call and inter-party talks for the formation of a coalition or unity government are likely to resume after the elections.
SOUTH EASTERN EUROPE
BULGARIA: Domestic bourses closed little changed on a weekly basis on Friday, having largely erased gains recorded at the start of the week following upbeat Q2 corporate earnings results. Ongoing concerns over the prospects of the global economy and thin trade volumes weighed on domestic stocks.
ROMANIA: According to Q2 2015 preliminary data released on Friday by the National Institute of Statistics, real GDP rose by 0.1%QoQ, bringing the annual rate of increase to 3.7%, on a seasonally adjusted basis, a tad below a 3.8%YoY print registered in the January-March 2015 period. On an unadjusted basis, real economic activity slowed to 3.3%YoY from 4.3%YoY a quarter earlier.
SERBIA: The EUR/RSD remained last week within the 120.00-121.00 range it has maintained for a few months now with market participants awaiting clues that could set the tone for the pair higher.
