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DAILY MARKET OVERVIEW
Today's Top Market Headlines – Jun 16, 2017
BOJ Maintains Stimulus as Pressure Rises to Talk About Exit

·Central bank raises its assessment of private consumption
·Inflation expectations remain in a weakening phase in Japan

With inflation still distant from its target, the Bank of Japan left its monetary
stimulus program on cruise control, saying improving private consumption
will support a growing economy.
The policy statement Friday came on the heels of the Federal Reserve’s third
interest rate increase since December, underscoring how the BOJ continues to
fall behind its global peers in normalizing policy. It will continue to manage
the yield curve through a negative interest rate and buying trillions of yen
worth of bonds, as expected by economists surveyed by Bloomberg.
Japan’s longest period of economic expansion in a decade has provided some
support for the BOJ, which hasn’t changed policy since September last year.
While the amount of bonds it buys is slowing, there is little expectation that it
will substantially change course during the rest of Governor Haruhiko
Kuroda’s current term. Calls are growing louder for him to at least map some
details of how the BOJ may eventually exit stimulus.
by Toru Fujioka
June 16, 2017, 5:56 AM GMT+3 June 16, 2017, 6:50 AM GMT+3
Source: https://bloom.bg/2rC5vXq

Sanctions and Rate- Cut Bets Send Ruble Weaker for a Third Week

·Russian central bank has said it will cut rates on Friday
·Analysts at Citigroup adopt a ‘more cautious’ stance

Russia’s ruble headed for a third weekly drop before the central bank meets on
Friday to continue the country’s easing cycle and after Citigroup Inc.
recommended selling.
The currency traded 0.3 percent higher at 57.71 per dollar as of 11:29 a.m. in
Moscow, paring a weekly drop to 1.2 percent. Central bank Governor Elvira
Nabiullina has said she plans to cut Russia’s 9.25 percent benchmark rate by
either 25 or 50 basis points at a board meeting in Moscow.
Analysts have been stepping up calls for the ruble to weaken after a 6 percent
rally this year caused it to break its historical link with oil, Russia’s main
export earner. The currency has come under further pressure this week after
the U.S. Senate voted to increase sanctions on the country and give Congress
the power to review any attempt by President Donald Trump to lift them
unilaterally.
by Natasha Doff
June 16, 2017, 11:43 AM GMT+3
Source: https://bloom.bg/2s8sTiG

Greece Wins 8.5 Billion Euro Payout as Debt Clarity Deferred

·Euro-area finance ministers clinched accord in Luxembourg
·IMF agrees to participate in bailout, won’t contribute funds

Greece’s creditors agreed to release 8.5 billion euros ($9.5 billion) in new loans
for Athens, capping a key chapter of the country’s bailout and ending months
of uncertainty over whether it could meet large bond payments due in July.
The decision came after euro-area finance ministers sought to offer more
clarity on Greece’s future debt path and outline possible measures they could
take to ease its burden in the future. Meeting in Luxembourg on Thursday,
they reinforced their commitment to extend Greece relief if needed and offered
more specifics on what this could entail. But they stopped short of providing
definitive steps, which they said would only come at the end of the bailout in
mid-2018. The news sent the Athens Stock Exchange to a two-year high
Friday.
by Viktoria Dendrinou, Nikos Chrysoloras, and Alexander Weber
June 15, 2017, 10:00 PM GMT+3 June 16, 2017, 1:48 PM GMT+3
Source: https://bloom.bg/2rn4mUA