After weakening for three consecutive months, sentiment among German businesses brightened slightly in March. The Ifo Business Climate Index for German industry and trade rose to 106.7 points in March from 105.7 points in February. Analysts were forecasting increase to 106.2. Assessments of the current business situation improved, reaching their highest level in six months. After last month’s sharp decline, expectations also recovered somewhat. German businesses are less sceptical than in February.
The ZEW Indicator of Economic Sentiment for Germany has slightly increased in March 2016. The index has improved by 3.3 points compared to the previous month, now standing at 4.3 points, but missed expectations on incline to 6.3 points."The uncertainty associated with the future economic development of important emerging economies, with the development of the oil price and with the external value of the euro continues to call for caution. Apparently, the renewed move of the ECB to considerably ease its monetary policy has not had a substantial effect on economic sentiment", says Professor Sascha Steffen, head of the ZEW Research Department "International Finance and Financial Management".
The assessment of the current situation in Germany is worsening. Slightly decreasing by 1.6 points, the index now stands at 50.7 points. Financial market experts' sentiment concerning the economic development of the Eurozone has weakened. ZEW’s Indicator of Economic Sentiment for the Eurozone has decreased by 3.0 points to a reading of 10.6 points. Decrease to 8.2 points was predicted. Losing 3.8 points in March 2016, the indicator for the current situation in the euro area has fallen to a value of minus 11.8 points.
There will be no data releases from Eurozone tomorrow. In the US session New home Sales figures will be published. Analysts forecast annual rate of 512,000.
Figures to watch:
New Home Sales (Wednesday 16:00)
