From Eurozone, yesterday, ZEW Economic Sentiment figures were released. The ZEW Indicator of Economic Sentiment for Germany has declined for the second consecutive time in February 2016. The index has decreased by 9.2 points compared to the previous month, now standing at 1.0 points (long-term average: 24.6 points). Analysts were anticipating decline to 0.1."The looming slowdown of the world economy and the uncertain consequences of the falling oil price put a strain on the ZEW Indicator of Economic Sentiment. In view of these developments, the concern over an increased credit default risk has already caused stock and bond prices for many banks in Europe, Japan and the US to slump," says Professor Sascha Steffen, head of the "International Finance and Financial Management" Research Department at ZEW.
The assessment of the current economic situation in Germany has also slightly deteriorated. Falling by 7.4 points, the index now stands at 52.3 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 9.1 points to a reading of 13.6 points. Falling by 0.5 points in February 2016, the indicator for the current situation in the euro area has dropped to a value of minus 8.0 points.
In the US session Empire State Manufacturing Index data was published. The February 2016 Empire State Manufacturing Survey indicates that business activity continued to decline for New York manufacturers. The headline general business conditions index edged up three points, but remained firmly in negative territory at -16.6. Analysts were anticipating increase to -10.3. The new orders and shipments indexes indicated an ongoing decline in both orders and shipments.
There will be no data releases from Eurozone tomorrow. In the US session Building Permits, Housing Starts, PPI and Industrial Production data will be published, as well as FOMC Meeting Minutes. Building Permits and Housing Starts should remain relatively unchanged, PPI is expected to decline by 0.2%. On the other hand, analysts forecast 0.3% increase in Industrial Production. FOMC Meeting Minutes should add additional volatility by the end of the session.
Figures to watch:
Building Permits/Housing Starts (Wednesday 14:30)
PPI (Wednesday 14:30)
Industrial Production (Wednesday 15:15)
FOMC Meeting Minutes (Wednesday 20:00)
