Concerning the economic development of the Eurozone is improving. ZEW’s Indicator of Economic Sentiment for the Eurozone has increased by 2.4 points to a reading of 64.8 points , beating forecasts on increase to 63.7. Gaining 8.3 points in April 2015, the indicator for the current situation in the euro area has reached a value of minus 28.3 points.

Focus of the European part of the Thursday's session was on French, German and Eurozone PMI data. French Manufacturing PMI decreased to 48.4 in April. Analysts were expecting incline to 49.4. Output growth stuttered almost to a halt in April, signalling a continuation of the moribund economic environment in France. New business growth weakened despite a further marked fall in prices charged, highlighting the competitive challenge facing French companies. Furthermore, French Services PMI declined to 50.8, missing forecasts on remaining unchanged at 52.4.

German Manufacturing PMI fell to 51.9, missing predictions on an incline to 53.1. The latest set of PMI results signalled a continuation of output growth in Germany’s private sector heading into the second quarter of 2015. Companies reported further, albeit slightly weaker, expansions of both output and new orders and also continued to increase their workforce numbers. German Services PMI also declined to 53.7, below expectations on a raise to 54.5.

Eurozone PMI figures, after French and German ones, were also disappointing. While markets were anticipating growth both Manufacturing and Services PMI declined. The slowdown in April was in fact therefore a symptom of weaker expansions in both Germany and France, with the latter suffering a near-stalling of growth led by an accelerating downturn of its manufacturing economy. Also, Spanish Unemployment Rate figures showed incline to 23.8%, missing forecasts on decrease to 23.5%, while GfK German Consumer Climate rose to 10.1.

From Eurozone, on Friday,  German Ifo Business Climate data was released. The Ifo Business Climate Index for German trade and industry rose to 108.6 points in April from 107.9 points last month. Analysts were predicting incline to 108.5. Assessments of the current business situation once again improved considerably. Optimistic assessments of the business outlook, however, were scaled back slightly. The upswing in the German economy continues. However, the euro erased an advance against the dollar as the head of the euro-area finance ministers’ group Jeroen Dijsselbloem said there were still “wide differences” between Greece and its creditors.

This week market will be looking at:

German Prelim CPI (Wednesday)

M3 Money Supply (Wednesday 10:00)

German Retail Sales (Thursday 8:00)

Spanish Flash CPI (Thursday 9:00)

Spanish Flash GDP (Thursday 9:00)

German Unemployment Change (Thursday 9:55)

CPI Flash Estimate/Unemployment Rate (Thursday 11:00)