Greenhouse Gas emissions have declined, partially due to weather
|On the radar
-
Trade balance in Romania landed at EUR -2.95 billion in July.
-
Unemployment rate in Czechia in August is scheduled for publishing at 9 AM CET.
-
At 11 AM CET, Croatia will publish producer prices in August as well as year-to-date budget balance.
-
On Tuesday morning, Czechia and Hungary will release August’s inflation.
Economic developments
During the summer, Eurostat published data on greenhouse gas (GHG) emissions for the first quarter of 2024. At first glance, the annual decreases in emissions (measured in tons) appear promising. Among the CEE countries, Czechia demonstrated the most significant improvement with a reduction of 5.4%. Hungary, Slovakia, and Croatia followed, with declines ranging between 4.4% and 4.2%, all below the EU average of 4%. On the other hand, emissions increased in Romania and Slovenia. It is important to note that these figures are largely influenced by temperatures, which reached historical highs in some countries during Q1. When considering GHG emissions per capita, Poland leads the region with 2.6 tons, followed by Czechia with 2.3 tons. The remaining CEE countries have values below the EU average of 1.9 tons. There is still a lot of room for improvement in EU, which should be supported by the funds from the RepowerEU facility.
Market movements
The monthly jobs report published on Friday showed the pace of hiring in the US moderated over the last three months. Such development arrives ahead of the FOMC meeting scheduled for September 18. This week, the ECB is holding a rate setting meeting and another interest rate cut is broadly expected. Expectations for monetary easing on the major markets have left a mark on local bond market as we have seen considerable decline of long-term yields over last week, including Friday (overall 20 basis points in Czechia or 30 basis points in Poland). In Poland, the move was likely supported by comments from several MPC members who expressed their opinion that monetary easing could be debated and potentially start in mid-2025 in Poland, thus earlier than previously communicated. One of the MPC members, Kotecki, would see space for discussion on rate cuts in the first months of 2025. He sees inflation peaking at around 6% in the first quarter of 2025 and falling afterwards. The FX market was stable.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.