Daily Overview of Global Markets & the SEE Region (Monday, May 25, 2015)

News — By on May 25, 2015 at 9:19 AM
Dr. Platon Monokroussos,  Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A

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

HIGHLIGHTS

WORLD ECONOMIC & MARKET DEVELOPMENTS

GLOBAL MARKETS: Addressing a business group in Providence on Friday, FOMC Chair Janet Yellen she stated that, if the domestic economy continues to improve in line with the Fed’s staff projections, it would be appropriate “at some point this year to take the initial step to raise the federal funds rate target”. In response to the above, US Treasuries weakened on Monday while the US dollar moved higher across the board.

GREECE: After two days of deliberations, the central committee of the major coalition partner SYRIZA, approved on Sunday the negotiating line proposed by Greece’s Prime Minister and party leader Alexis Tsipras. Meanwhile, official negotiations in Brussels between Greek authorities and the Institutions will reportedly resume on Tuesday with the two sides mainly focusing on an overhaul of the VAT system as well as social security and labor market reform.  In other news, speaking to a local TV station on Sunday, Interior Minister Nikos Vroutsis said that, as things stand at this point, Greece cannot meet its debt (interest and amortization) payments due to the IMF next month, amounting c. €1.5bn cumulatively as “this money is not there to be given”.

SOUTH EASTERN EUROPE

SERBIA: In view of thin trade volumes and a light government bond auctions calendar as well as in the absence of crucial macroeconomic data, the EUR/RSD remained trapped within its recent trading range between 120.00-121.00 last week.

CESEE MARKETS: The majority of emerging stock markets kicked off the week on a negative footing on expectations that the Fed will incept its rate-hiking cycle later in the year. Investor caution also prevailed as negotiations between Greek authorities and the Institutions continue. Along similar lines,  regional currencies and government bonds broadly fell in early European trade on Monday.

Viewers can read the full report herebelow:

Daily Overview May 25, 2015

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