Eurozone, yesterday, Eurozone Trade Balance figures were released. The first estimate for euro area (EA19) exports of goods to the rest of the world in December 2015 was €167.5 billion, an increase of 3% compared with December 2014 (€162.1 bn). Imports from the rest of the world stood at €143.2 bn, also a rise of 3% compared with December 2014 (€138.5 bn). As a result, the euro area recorded a €24.3 bn surplus in trade in goods with the rest of the world in December 2015, compared with +€23.6 bn in December 2014.
Also, ECB President testified monetary policy before the European Parliament's Economic and Monetary Affairs Committee, in Brussel. The euro zone will need "a strong effort" from all its policymakers if it is to overcome the "significant challenges" that global markets have thrown down over the past few weeks, the head of the European
Central Bank has told the region's lawmakers Monday. “
In the light of the recent financial turmoil, we will analyze the state of transmission of our monetary impulses by the financial system and in particular by banks,” Draghi told European Parliament lawmakers in Brussels on Monday.
In addition, the ECB will examine the impact of renewed declines in energy prices and “if either of these two factors entail downward risks to price stability, we will not hesitate to act,” he said. Referring to the global economy, Draghi said that “a continuation of the rebalancing process is needed to secure sustainable growth over the medium term.” He also said this “could imply some headwinds in the short term, which will require close monitoring of the related risks.” Draghi underlined the ECB’s efforts since 2014 to repair confidence in the region’s banking sector.
From Eurozone, tomorrow, ZEW Economic Sentiment figures are scheduled for a release. Analysts are expecting decrease to 0.1 in German and to 10.3 in Eurozone Economic Sentiment. In the US session Empire State Manufacturing Index data will be published. Increase to -10.3 is predicted.
Figures to watch:
German ZEW Economic Sentiment/ZEW Economic Sentiment (Tuesday 11:00)
Empire State Manufacturing Index (Tuesday 14:30)
