Daily Overview of Global Markets & the SEE Region (Wednesday, January 25, 2017)

Banking, Company Profiles, Finance, Markets, News, Person Profiles, Reports, Statistics, Stock Markets — By on January 25, 2017 at 11:20 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: In its ruling publicly announced yesterday, the UK Supreme Court upheld the High Court decision that parliamentary approval is required before the government triggers Article 50. However, the worst case scenario for the UK government was avoided, as the Court also ruled that regional assemblies do not have to be consulted for the activation of the Brexit process. In a knee-jerk reaction to the Court ruling, the GBP moved lower before recovering to levels around 1.2530 against the USD in European trade on Wednesday on the view that, in return for approving the relevant bill, UK lawmakers may force the government to abandon a hard Brexit negotiation plan. Focus today is on the Italian Constitutional Court’s ruling on the Lower House electoral law (Italicum) that was approved by PM Renzi’s government.

GREECE: At the Eurogroup that is scheduled to convene tomorrow, the Greek side’s main goal is to unfreeze the negotiations for the 2nd programme review and have the institutions’ (EC/ECB/ESM/IMF) heads return to Athens with a view to successfully closing the review by end February. In a newspaper interview the Greek Prime Minister Alexis Tsipras denied the possibility of legislating upfront additional measures beyond those outlined in the bailout programme and particularly not for the post-programme period. According to the Ministry of Finance, for the period January – December 2016 the State Budget Primary Balance amounted to a surplus of €4,437 million, against the primary surplus target of €1,983 million and the primary surplus of €2,270 million recorded in the same period of the previous year.

SOUTH EASTERN EUROPE

CESEE MARKETS: Emerging market assets were mixed earlier on Wednesday. Trailing a rise to new record highs in Wall Street overnight thanks to upbeat corporate results, EM stocks were broadly firmer in European trade today. In FX markets, the Turkish lira broadly underperformed its regional peers after the Central Bank fell short of meeting market expectations for more aggressive rate hikes at its MPC meeting yesterday.

Viewers can log herebelow and read the full report: Daily Overview January 25 2017

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