Daily Overview of Global Markets & the SEE Region (Wednesday, September 2, 2015)

Banking, Company Profiles, Finance, Markets, News, Person Profiles, Reports, Statistics, Stock Markets — By on September 2, 2015 at 10:45 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: Wall Street slumped overnight as the US ISM manufacturing index for August came in softer-than-expected. Elsewhere, the picture in Asian equity markets was rather mixed on Wednesday, with Chinese bourses trimming losses on their last trading day of the week as they are closed in the next two days for holiday. The China’s State Council has reportedly decided to take some measures to stabilize the market and support economic growth, which provided some respite in domestic equity markets. In Europe, although major bourses opened in the black, they turned negative shortly after. It seems that the slump in oil prices for a second day in a row has put significant pressure on the energy price sector. In FX markets, the yen weakened against its major currency peers, as the recent downtrend in Japanese stocks eased today dulling demand for the safe-haven currency. On the data front, focus today is on the US ADP employment report which may give a direction for the more important US non-farm payrolls release due on Friday.

GREECE: Briefing the IMF Executive Board on Greece’s new ESM loan facility, the Director of the IMF’s European Department, Poul Thomsen, reportedly cautioned that post-election talks on the formation of a new government in the country will probably take some time. As per the same sources, such a development could probably push back the completion of Greece’s first programme review, initially scheduled for October 2015, and entails a risk of a delay in the release of additional official funding under the new ESM loan facility as well as in the commencement of official discussions on the sustainability of Greece’s public debt and the potential provision of new debt relief measures.

SOUTH EASTERN EUROPE

SERBIA: According to a statement released at the IMF’s website yesterday upon the conclusion of a 2-week visit to Serbia, the Fund’s mission reached a staff-level agreement with domestic authorities on the set of policies needed to complete the second review under the country’s 3-year precautionary Stand-By Arrangement with the Fund.

CESEE MARKETS: CESEE stock markets and government bonds were mixed in early trade on Wednesday, amid persisting global growth concerns, while investor caution prevailed ahead of key data releases and events globally due later in the week. In the FX markets, most CESEE currencies extended their recent losses at the time of writing.

Viewers can read the full report herebelow:

Daily Overview September 2 2015

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