Daily Overview of Global Markets & the SEE Region (Friday, August 28, 2015)

Banking, Company Profiles, Finance, Markets, News, Person Profiles, Reports, Statistics, Stock Markets — By on August 28, 2015 at 12:35 PM
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: Wall Street remained in the black yesterday for a second consecutive day, as Q2 GDP growth was revised up more-than-expected and crude oil prices surged by over 10%. Trailing overnight gains in Wall Street, major Asian bourses extended yesterday’s up-move on Friday, while major European equity indices eased back in early trade. In FX markets, the US dollar consolidated around Thursday’s levels against its major currency peers in early European trade. Focus today is on the US core PCE due for release later today, for which consensus expects to hold steady at 1.3%YoY in July. Additionally, Fed officials’ speeches at the annual Jacksons Hole’s Economic Symposium (Aug. 27-29) are also worth watching, possibly including hints on Fed’s expected monetary policy normalization process.

GREECE: In line with the Constitution of Greece, the President of the Hellenic Republic assigned yesterday to Vassiliki Thanou, the head of the Supreme Administrative Court-one of Greece’s three supreme courts- to form a temporary cabinet and carry out a snap election. The caretaker Prime Minister was sworn-in yesterday afternoon and the new cabinet was sworn-in earlier today. According to the local press, Giorgos Houliarakis, Greece’s representative at the EuroWorking Group, will assign the role of Finance Minister. A Presidential Decree dissolving Parliament and officially calling for national elections on September 20, is reportedly expected to be issued later in the day.

SOUTH EASTERN EUROPE

ROMANIA: According to media reports, Romania’s main political parties agreed yesterday to delay the adoption of some planned tax cuts, in order to mitigate fiscal slippage risks.

SERBIA: Speaking on the sideline of a Western Balkans summit in Vienna, EU enlargement commissioner Johannes Hahn signaled on Thursdaythat official negotiations with Serbia for the country’s accession to the bloc may start “very soon”.

CESEE MARKETS: CESEE assets were mixed in early European trade on Friday, as yesterday’s upbeat US GDP data reinforced optimism about the prospects of the world’s biggest economy, but expectations for higher Fed interest rates ahead – albeit later than previously expected – and China-related jitters prevail. Despite a notable recovery staged after the global sell-off in the beginning of the week, most regional stock indices were poised to end the week in the red.  Financial markets in Ukraine appeared to be in a consolidation mode after registering hefty gains on Thursdayfollowing news that the government reached a much-anticipated agreement with its creditors over a restructuring of the country’s sovereign debt.

Daily Overview August 28 2015

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