From Eurozone, on Thursday, Spanish Unemployment Rate and German Prelim CPI data was published. The unemployment rate in Spain fell more-than-expected last month, official data showed on Thursday. In a report, Ministry of Labour and Immigration said that Spanish unemployment rate fell to an annual rate of 20.90%, from 21.18% in the preceding month. Analysts had expected Spanish unemployment rate to fall to 21.05% last month.

The inflation rate in Germany as measured by the consumer price index is expected to be +0.5% in January 2016. Based on the results available so far, the Federal Statistical Office (Destatis) also reports that the consumer prices will decline by 0.8% on December 2015.The harmonised index of consumer prices for Germany, which is calculated for European purposes, is expected to be up 0.4% in January 2016 year on year. Compared with December 2015, it is expected to decrease by 0.9%. 

Friday brought Spanish CPI and GDP figures, as well as M3 Money supply and Eurozone CPI data, Consumer price inflation in Spain fell more-than-expected last month, official data showed on Friday. In a report, Instituto Nacional de Estadistica said that Spanish CPI fell to -1.9%, from -0.3% in the preceding month. Analysts had expected Spanish CPI to fall -1.5% last month. Spain’s gross domestic product rose last month. In a report, Instituto Nacional de Estadistica said that Spanish GDP rose to 0.8%, from 0.8% in the preceding month. Analysts had expected Spanish GDP to rise 0.8% last month.

The annual growth rate of the broad monetary aggregate M3 decreased to 4.7% in December 2015, from 5.0% in November, averaging 5.0% in the three months up to December. Analysts were expecting increase to 5.1%. Euro area annual inflation is expected to be 0.4% in January 2016, up from 0.2% in December 2015, according to a flash estimate from Eurostat, the statistical office of the European Union. This was in line with market forecasts. Looking at the main components of euro area inflation, services is expected to have the highest annual rate in January (1.2%, compared with 1.1% in December), followed by food, alcohol & tobacco (1.1%, compared with 1.2% in December), non-energy industrial goods (0.7%, compared with 0.5% in December) and energy (-5.3%, compared with -5.8% in December).

This week markets will be looking at:

Spanish Manufacturing PMI (Monday 9:15)

Italian Manufacturing PMI (Monday 9:45)

German Unemployment Change (Tuesday 9:55)

Unemployment Rate (Tuesday 11:00)

Spanish Services PMI (Wednesday 9:15)

Italian Services PMI (Wednesday 9:45)