Events that marked the week:
On Tuesday 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.
Wednesday brought French and German Manufacturing
PMI data.
While no change was expected French Manufacturing PMI rose to 51.6. On the other hand, Services PMI decline to 50.0, missing forecasts in decline to 50.6. This stagnation of service sector business activity, was an ending of a ten-month period of expansion. In contrast, manufacturing sector output rose at a slightly faster (albeit still modest) rate. New business in the French private sector increased for a fourth successive month in December.
German Manufacturing PMI edged up slightly to 53.0, while Services PMI fell to 55.4. Figures were in line with market predictions. Output growth slowed fractionally at both manufacturers and service providers. Mirroring the trend for activity, new business placed with German private sector firms also increased at a slightly weaker rate in December.
Thursday was marked by German Business Sentiment data from Eurozone. Strong sentiment in the German economy weakened slightly this month. The Ifo Business Climate Index for German industry and trade fell to 108.7 points in December from 109.0 points in November. No change was expected. Assessments of the current business situation declined. Optimism about future business developments, by contrast, remained unchanged. The index values for the business climate, situation and expectations are around three points above the respective levels seen in December 2014.
Next week markets will be looking at:
GfK German Consumer Climate (Tuesday 8:00)
