Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The BoJ stayed put on interest rates at this two-day policy meeting that concluded earlier today and reiterated its pledge to increase the monetary base at an annual pace of JPY80trn through asset purchases. In its accompanying semi-annual Outlook Report, the BoJ revised lower its inflation forecasts for the fiscal years 2015 and 2016, supporting the view that the prospect of further policy stimulus in the coming months cannot be ruled out.
GREECE: The government submitted to Parliament earlier today under the emergency procedure the new bank recapitalization framework with an aim a vote to be held by late Sunday (November 1), a day after the expected publication of the stress test results. A multi bill containing the required legislation for the implementation of a number of pending prior actions attached to the release of the next ESM loan installment (€2bn) that was initially planned for mid-October was also submitted to Parliament yesterday. On the data front, the Economic Sentiment Indicator improved in October halting a seventh-month falling streak, coming in at 86.5 from September’s 83.1.
SOUTH EASTERN EUROPE
SERBIA: Despite a 2.4%MoM (sa) decline in industrial production in September, the sector’s annual recent impressive annual performance remained intact with the said index rising by 13.8%YoY (nsa) after Augusts’ 12.9%YoY increase, supporting our view about further economic recovery in H2 2015.
CESEE MARKETS: Emerging stock markets broadly recovered some ground in early European trade on Friday, with a rally in technology shares leading the way higher. News that the Chinese government approved plans to end the one-child policy, in a move that will allow couples in the country to have up two children, also provided support to domestic equity. In the CESEE region, most major stock indices stood in the red earlier today. Turkey’s repeat general elections take centre stage in the CESEE region on Sunday.
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Daily Overview October 30 2015
