Yesterday, from Eurozone, ZEW Economic Sentiment data for Eurozone and Germany was released.The ZEW Indicator of Economic Sentiment for Germany has increased for the second consecutive time in December 2015. Gaining 5.7 points compared to the previous month, the index now stands at 16.1 points (long-term average: 24.7 points). Smaller increase to 15.2 was expected.Financial market experts’ sentiment concerning the economic development of the Eurozone has improved. ZEW’s Indicator of Economic Sentiment for the Eurozone has increased by 5.6 points to a reading of 33.9 points. Gaining 0.4 points in December 2015, the indicator for the current situation in the euro area has climbed to a value of minus 9.6 points.
US session was marked by CPI figures.
The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in November on a seasonally adjusted basis. Over the last 12 months, the all items index increased 0.5% before seasonal adjustment. The indexes for energy and food declined in November, offsetting an increase in the index for all items less food and energy and resulting in the seasonally adjusted all items index being unchanged. The food index fell 0.1%, as the index for food at home fell 0.3 percent, with five of the six major grocery store food group indexes declining.
As for tomorrow, French, German and Eurozone PMI figures will be released. While no change is expected in Manufacturing PMI for all three data reports, Services PMI should show only marginal decrease. In the US session, Building Permits and Housing Starts figures will be published. No significant change compared to last month is forecasted. However, the focus of the session will be on Fed rate decision, with economists anticipating rate hike for the first time in eight years. We can expect a lot of volatility with following Press Conference as well.
Figures to watch:
French Flash Manufacturing PMI/French Flash Services PMI (Wednesday 9:00)
German Flash Manufacturing PMI/German Flash Services PMI (Wednesday 9:30)
Flash Manufacturing PMI/Flash Services PMI (Wednesday 9:00)
Building Permits/Housing Starts (Wednesday 14:30)
Federal Funds Rate/FOMC Statement (Wednesday 20:00)
FOMC Press Conference (Wednesday 20:30)
