Flash Germany Manufacturing PMI increased to 51.2 from 49.5 in November, what is a 2-month high, and above predicted incline to 50.4. However, Flash Germany Services PMI fell to 51.4 from 52.1 in November, what is a 17-month low. Analyst were anticipating raise to 52.6. The pace of expansion was in fact the weakest in one-and-a-half years and well below levels seen earlier in the year, when GDP grew 0.8%. The amount of new work placed with German companies declined again, suggesting that output growth may slow further at the start of next year, with the possibility of a downturnintensifying.

Flash Eurozone Services PMI Activity Index rose to 51.9 from 51.1 in November, beating slightly expectation on an incline to 51.5. Flash Eurozone Manufacturing PMI came to 50.8 from 50.1 in November, what is a 5-month high. Rates of expansion remained weak in both manufacturing and services. However, while growth of manufacturing output was unchanged on November, a slightly upturn in the pace of business activity growth was recorded in the service sector.

The ZEW Indicator of Economic Sentiment for Germany gained 23.4 points in December 2014. Increasing for the second consecutive time, the index now stands at 34.9 points (long-term average: 24.4 points), the highest reading since May 2014.

The sentiment indicator for the Eurozone has increased by 20.8 points to a reading of 31.8 points. The indicator for the current situation in the euro area decreased in December by 3.1 points to a value of minus 62.8 points. In the US session Building Permits and Housing Starts figures were released.

Privately-owned housing units authorized by building permits in November were at a seasonally adjusted annual rate of 1,035,000, in line with market forecast. This is 5.2% below the revised October rate of 1,092,000 and is 0.2% below the November 2013 estimate of 1,037,000. Single-family authorizations in November were at a rate of 639,000; this is 1.2% below the revised October figure of 647,000. Authorizations of units in buildings with five units or more were at a rate of 367,000 in November.

Privately-owned housing starts in November were at a seasonally adjusted annual rate of 1,028,000, also in line with market forecast. This is 1.6% below the revised October estimate of 1,045,000 and is 7.0% below the November 2013 rate of 1,105,000. Single-family housing starts in November were at a rate of 677,000; this is 5.4% below the revised October figure of 716,000. The November rate for units in buildings with five units or more was 340,000.

Tomorrow, only minor importance Final CPI data is scheduled for a release from Eurozone. No change from prelim reading showing 0.3% increase is expected. US session should be quite eventful. On a data front CPI figures will be released. Analysts are predicting 0.1% decrease, while Core CPI should raise by 0.1%. Later tomorrow, we can expect a lot of volatility with Fed interest rate decision and following statement though interest rates are not forecasted to change.

Figures to watch:

CPI (Wednesday 14:30)

FOMC Economic Projections/FOMC Statement/Federal Funds Rate (Wednesday 20:00)