Events that marked the week:
From Eurozone, on Monday, German PPI figures were released. In November 2015 the index of producer prices for industrial products fell by 2.5% compared with the corresponding month of the preceding year. In October 2015 the annual rate of change all over had been –2.3%. Compared with the preceding month the overall index fell by 0.2% in November 2015 (–0.4% in October 2015 and –0.4% in September 2015). This was in line with market forecasts.
The outcome of the Spanish general election over the weekend caused some uncertainty before the London open on Monday.
The ruling party of Spanish Prime Minister Mariano Rajoy fell short of an absolute majority in elections Sunday that saw both major traditional parties lose ground and left it uncertain who would form the next government.Rajoy’ s conservative People's Party emerged as the strongest party in the vote, but lost around a third of its seats and fell well short of the absolute majority it achieved in 2011. Rajoy however said he hopes to continue ruling despite losing the absolute majority.
Tuesday brought German Consumer Climate data. Consumer mood is improving as the end of the year approaches. After four declines in a row, the consumer climate is rising again slightly. The overall indicator is forecasting 9.4 points for January 2016 compared with 9.3 points in December. Analysts were predicting no change.Both economic and income expectations are significantly on the up. Propensity to buy confirms its extremely high level with almost no change.
This week markets will be looking at:
Spanish Flash CPI (Wednesday 9:00)
M3 Money Supply (Wednesday 10:00)
