Wednesday's session brought German and Spanish CPI data. The inflation rate in Germany as measured by the consumer price index is expected to be +0.3% in June 2016. Based on the results available so far, the Federal Statistical Office (Destatis) also reported that the consumer prices are expected to increase by 0.1% on May 2016. This was in line with market expectations.

According to the flash estimate published by the INE, Spanish annual inflation of the CPI in June 2016 is -0.8%. Analysts were anticipating 1.0% decline. This indicator provides a preview of the CPI that, if confirmed, would imply an increase of two tenths in its annual rate, given that in May this change was -1.0%. This increase is mainly explained by the increase in the prices of fuels (gas and diesel oil) and electricity.

Thursday's session was marked by Eurozone CPI data. Euro area annual inflation is expected to be 0.1% in June 2016, up from -0.1% in May 2016, according to a flash estimate from Eurostat. Analysts were predicting increase to 0.0%. Looking at the main components of euro area inflation, services is expected to have the highest annual rate in June (1.1%, compared with 1.0% in May), followed by food, alcohol & tobacco (0.9%, stable compared with May), non-energy industrial goods (0.4%, compared with 0.5% in May) and energy (-6.5%, compared with -8.1% in May).

Spanish Manufacturing PMI was released from Eurozone on Friday. Business conditions in the Spanish manufacturing sector improved modestly in June. While the rate of new order growth eased further and was marginal, output rose at a faster pace, in turn leading firms to take on extra staff and increase purchasing activity. Meanwhile, input costs were broadly unchanged and output prices continued to fall. The seasonally adjusted Markit Spain Purchasing Managers’ Index ticked up to 52.2 in June from 51.8 in May.

This week markets will be looking at:

Spanish Unemployment Change (Monday 9:00)