French private sector activity grew at the slowest pace in more than a year in February, underlining concerns over the economic outlook of the euro zone’s second largest economy, preliminary data showed on Monday. The preliminary services purchasing managers’ index fell to a seasonally adjusted 49.8 this month. The reading came in below expectations for 50.3 and down from 50.3 in January. In contrast, the French manufacturing purchasing managers’ index inched up to a seasonally adjusted 50.3 this month, beating expectations for 49.9 and up from 50.0 a month earlier.

 

From Eurozone, on Tuesday, German Business Confidence data was released. German business confidence fell for a third month in a sign that companies in Europe’s largest economy are growing more concerned as slowing global growth roils financial markets. The Ifo institute’s business climate index dropped to 105.7 in February from 107.3 in January. The median estimate of economists was for a decline to 107.0. China’s cooling economy is weighing on global trade and hurting German exporters, with a report Tuesday showing net trade dragged on economic growth last quarter. 

 

Thursday's session brought M3 Money Supply data. The annual growth rate of the broad monetary aggregate M3 increased to 5.0% in January 2016, from 4.7% in December, averaging 4.9% in the three months up to January. Analysts were expecting no change.The annual growth rate of the narrower aggregate including currency in circulation and overnight deposits (M1) decreased to 10.5% in January, from 10.8% in December.

 

Friday's session brought Spanish and German data. According to the flash estimate published by the INE, the annual inflation of the CPI in February 2016 is -0.8%. Analysts were expecting 0.5% decrease. This indicator provides a preview of the CPI that, if confirmed, would imply a decrease of five tenths in its annual rate, given that in January this change was -0.3%.This decrease is mainly explained by the decrease in the prices of fuels (gas and diesel oil) and food and non-alcoholic beverages.

 

The inflation rate in Germany as measured by the consumer price index is expected to be 0.0% in February 2016. Based on the results available so far, the Federal Statistical Office (Destatis) also reports that the consumer prices will increase by 0.4% on January 2016.The harmonised consumer price index for Germany (HICP), which is calculated for European purposes, is expected to be down by 0.2% in February 2016 year on year. Compared with January 2016, it is expected to be up by 0.4%. 

 

This week markets will be looking at:

 

German Retail Sales (Monday 8:00)

CPI (Monday 11:00)

Spanish Manufacturing PMI (Tuesday 9:15)

Italian Manufacturing PMI (Tuesday 9:45)

German Unemployment Change (Tuesday 9:55)

Unemployment Rate (Tuesday 11:00)

Spanish Unemployment Change (Wednesday 9:00)

Spanish Services PMI (Thursday 9:15)

Italian Services PMI (Thursday 9:45)