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Financial markets have been sensitive with any domestic news

Fri, Apr 4 2008, 08:29 GMT
by Yapi Kredi Bank Economic Research Department

Yapi Kredi Bank


This issue includes:

  • - key economic news
  • - a feature on financial markets
  • - a special focus on automotive industry
  • - a country monitoring about Turkey
  • - data and forecast at country and regional level

Financial markets have remained very volatile in recent weeks, amid concerns about the US and world economy and the news regarding some banking institutions. However, despite substantial losses in the stock markets both internationally and in the CEE countries, the deterioration in the country risk during the month of March - in terms of credit default swap (CDS) - was relatively limited in most of the CEE economies, with some exceptions. Indeed financial markets are discriminating more than before among different countries, and are particularly sensitive to any bad news originating from the domestic level.

The automotive industry in CEE is still operating at high speed: almost 6.2 mn passenger cars and commercial vehicles were produced in the region during 2007, according to figures recently released by OICA. Production in CEE grew by 18.7% in 2007, much higher than the world average of 5.5%. The CEE region produces now more than one fourth of the vehicles produced in Europe.

CEE countries: year to date stock market performance

Chart 1


Archive

Yapi Kredi  | Yapi ve Kredi Plaza D Blok, Levent 80620 Istanbul
http://www.yapikredi.com | research@ykb.com

Legal disclaimer and risk disclosure

This document is prepared by the Economic Research Department of Yapi Kredi Bank A.S by using official data. No responsibility is assumed for the accuracy of the information given in the document although utmost care has been taken in their compilation and processing.


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