From Eurozone, on Tuesday, German and Eurozone GDP and Economic Sentiment data was released. German economic growth is losing some momentum. In the third quarter of 2016, the gross domestic product (GDP) rose 0.2% on the second quarter of 2016 after adjustment for price, seasonal and calendar variations; this is reported by the Federal Statistical Office (Destatis). In the first half of the year, the GDP had increased somewhat more, by 0.4% in the second quarter and 0.7% in the first quarter.

Separate report on Eurozone GDP showed that seasonally adjusted GDP rose by 0.3% in the euro area (EA19) and by 0.4% in the EU28 during the third quarter of 2016, compared with the previous quarter, according to a flash estimate published by Eurostat, the statistical office of the European Union. In the second quarter of 2016, GDP also grew by 0.3% and 0.4% respectively. Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 1.6% in the euro area and by 1.8% in the EU28 in the third quarter of 2016, after +1.6% and +1.8% respectively in the previous quarter.

The ZEW Indicator of Economic Sentiment for Germany has increased substantially in November 2016. The index has improved by 7.6 points compared to October, now standing at 13.8 points (long-term average: 24.0 points). "The ZEW Indicator of Economic Sentiment has increased the fourth time in a row – not least due to the positive economic figures seen in the US and China. The renewed increase is indicative of a stronger economic growth in the coming six months. The election of Donald Trump as US President and the resulting political and economic uncertainties, however, have made an impact. After the election, the economic sentiment has been less positive than before," comments ZEW President Professor Achim Wambach.

The assessment of the current situation in Germany has slightly decreased. Falling by 0.7 points, the index now stands at 58.8 points. Financial market experts’ sentiment concerning the economic development of the eurozone has slightly improved, with the respective indicator increasing by 3.5 points to a reading of 15.8 points. The indicator for the current economic situation in the eurozone also climbed 3.5 points to a level of minus 9.3 points in November 2016.

From Eurozone, on Thursday, Final CPI data was published. Euro area annual inflation was 0.5% in October 2016, up from 0.4% in September. In October 2015 the rate was 0.1%. European Union annual inflation was 0.5% in October 2016, up from 0.4% in September. A year earlier the rate was 0.0%. These figures come from Eurostat, the statistical office of the European Union. The largest upward impacts to euro area annual inflation came from restaurants & cafés (+0.07 percentage points), rents and tobacco (both +0.04 pp), while gas (-0.12 pp), vegetables (-0.06 pp) and milk, cheese & eggs (-0.05 pp) had the biggest downward impacts.

This week markets will be looking at:

French Flash Manufacturing PMI/French Flash Services PMI (Wednesday 9:00)

German Flash Manufacturing PMI/German Flash Services PMI (Wednesday 9:30)

German Ifo Business Climate (Thursday 10:00)