Sun, May 09, 2021 @ 16:44 GMT
Home Tags Germany

Germany

Germany upgrades 2021 GDP forecasts to 3.5% despite current serious infection situation

German government upgraded 2021 GDP growth forecasts to 3.5%, up from prior projection of 3.0%. GDP growth is expected to remain strong at 3.6% in 2022. On the whole, the economy would reach its pre-pandemic level next year at the latest. Economy Minister Peter Altmaier said "today's spring projection is...

Research Germany: End of the “Era Merkel’ Leaves German Politics in Unchartered Territory

The 2021 election will push German politics into unchartered territory, with the potential of CDU/CSU returning into opposition for the first time since 2005. The Green party will be king-makers in any future governing coalition, opening up the potential for a more relaxed fiscal stance down the line....

Two Trades To Watch: FTSE, Dax

FTSE steady as investors digest BP & HSBC results FTSE futures are trading cautiously ahead of the open, the broad mood in the market is wobbling ahead of tomorrow’s Fed decision. BP share price and HSBC share price movement will be in focus after both heavyweights beat forecasts. Earnings are also out...

German Business Confidence Misses Estimate

EUR/USD is taking a pause after ending the week with strong gains. In the European session, EUR/USD is trading at 1.2074, down 0.19% on the day. The euro continues to take advantage of a US dollar in retreat and gained close to 1.0% last week. April has been kind to...

Sunset Market Commentary

Markets This week’s eco calendar contains plenty of data (US & EMU Q1 growth and price data, EMU and US confidence) and events (Fed policy decision on Wednesday, US Treasury selling more than $180 bln combined in 2, 5 and 10y bonds). The earnings season (especially in the US) will...

US Open: Futures Point to a Mixed Start ahead of Tesla Earnings

US futures point to a quietly mixed start ahead of a very busy week for earnings. US futures Dow futures +0.1% at 34099 S&P futures +0.04% at 4180 Nasdaq futures -0.02% at 13929 In Europe FTSE +0.4% at 6960 Dax -0.06% at 15286 Euro Stoxx +0.1% at 4019 US stocks point to...

Dollar Mixed after Durable Goods Miss, Aussie Leads Commodity Currencies Higher

Overall market sentiments are steady today. Commodity currencies are currently the strongest ones for today so far, as led by Aussie. Dollar is recovering despite weaker than expected durable goods orders. Euro turns after after slightly weaker than expected Germany Ifo business climate. Yen and other European majors are...

Covid-19 Nerves Shake, But Don’t Stir Asia

The slow, but steady increase in Covid-19 cases across Asia, ex-India, is weighing on sentiment in early Asian trading. India's situation dominated the weekend press, but across Japan, South Korea, Thailand and others in between, Covid-19 is undermining confidence in cyclical recovery that many, including the author, have priced...

Germany Ifo business climate rose to 96.8, but not longer quite optimistic

Germany Ifo Business Climate rose slightly to 96.8 in April, up from 96.6, below expectation of 97.7. Current Assessment index rose to 94.1, up from 93.1, below expectation of 94.5. Expectations index dropped to 99.5, down form 100.3, below expectation of 101.4. Ifo said: "Companies once again raised their assessments...

EUR/USD: Technical Picture Improves Greatly

Markets European PMI confidence came in better than expected last Friday. Manufacturing continues to run hot (63.3 from 62.5) and the services sector entered growth territory (50.3) for the first time since August last year. Pricing pressures continue to build across the economy. European equities and core bonds yields nevertheless...

Weekly Focus – Outcome-Based Fed Unlikely to Send New Signals Next Week

This week This week has been a quiet one in terms of economic data releases. On COVID-19, global cases have reached new record highs, as India is hit hard currently by the Indian B.1.617 variant. Things are looking better in Europe, where new cases are declining (although the picture is...

Dollar in Fresh Selloff, Yen and Euro Strong

Fresh selloff in seen in Dollar as we enter into US session. Euro was lifted earlier today by strong PMIs. But it could be taken over by Yen before weekly close. Mild risk aversion in Europe is keeping Yen afloat. US futures are mixed at the time of writing,...

Germany PMI composite dropped to 56.0, pandemic third wave stifled progress

Germany PMI Manufacturing dropped slightly to 66.4 in April, down from 66.6, above expectation of 65.9. PMI Services dropped to 50.1, down from 51.5, below expectation of 50.8. PMI Composite dropped to 56.0, down from 57.3. Phil Smith, Associate Director at IHS Markit said: "The third wave of the pandemic...

Is Biden Preparing A Series Of Tax Increases?

Markets The ECB yesterday as expected kept the parameters of monetary policy unchanged. Chair Lagarde confirmed the economic assessment from March. The short-term picture is still clouded by ongoing containment measures against the new corona wave, which possibly resulted in negative growth in Q1, but the accelerating roll-out of vaccinations...

Flash: ECB Review: Not a ‘Significant’ Meeting

Key takeaways The ECB meeting concluded today was not a 'significant' meeting, with no new signals leaving many decisions for the June meeting. Near term growth outlook was 'titled to the downside' while the medium term growth risk was 'broadly balanced'. The latter has paved the way for...

Sunset Market Commentary

Markets EUR/USD 1.20; will or won’t it break? The common currency remains under pressure today, extending the move down that started yesterday in early European dealings. At the same time, the dollar is relatively well bid, along with the Japanese yen in a sign risk sentiment is more fragile than...

Risk Appetite Under Pressure As COVID -19 Fears Return

Market movers today UK: March inflation figures. Bank of Canada: Monetary policy meeting. It is widely expected that the policy rate will be kept unchanged at 0.25%. But we might see more upbeat rhetoric. The 60 second overview Virus concerns: Risk appetite has been under pressure the last 24 hours among...

Sunset Market Commentary

Markets Last week, US and European interest rate markets developed rather independently. US yields eased despite a series of strong price and activity data. European interest rates (and the euro) staged a catch-up move as investors saw improvement in the European vaccination process, supporting the prospect of a gradual reopening....

The Picture For The Dollar Is Still Damp

Markets With no important data on the agenda, markets were awaiting guidance after last week’s remarkable repositioning, especially on core bond markets. The setback on German/EMU bond markets continued as investors are counting down to Thursday’s ECB meeting. The ECB will probably repeat that accommodative financial conditions remain necessary across...

Sunset Market Commentary

Markets The long end of the European yield curve took off where it left on Friday: rising and underperforming against the US. The EU 10y swap rate trades north of 0.10% for only the second time since March 2020, trying to force a break higher out of a closing triangle...

Dollar Selloff Resumes and Accelerates, Sterling Gaining Most For Now

Euro finally breaks through 1.2 handle against Dollar, as the greenback's selloff resumes today and accelerates broadly. Nevertheless, Euro is overwhelmed by others, in particular Sterling, which is the strongest for now, followed by Swiss Franc. Commodity currencies are somewhat lagging behind too, partly as they're facing some pressure...

Bundesbank: Germany economic output decreased in Q1

In the monthly report, Bundesbank said Germany economic output decreased in Q1. Stricter and longer-lasting restrictions increased the losses in many service sectors. Industrial production fell in February as "supply bottlenecks for preliminary products must have played an important role in the decline." Automotive industry was "particularly hard hit". However,...

DAX Outlook: DAX Is Consolidating Under New Record High, Further Advance Likely

The Dax is trading within narrow consolidation under new all-time high on Monday, following 1.5% rally last Friday (the biggest one-day gains since March 8). Global stocks remain underpinned by expectations that major world central banks will maintain ultra-loose monetary policies for an extended period of time, while encouraging signs...

German Politics And Stand-Off With Russia In Focus While Waiting For ECB

Market movers today Today: A quiet start to the week in terms of economic data, no key releases are scheduled for today. There won't be speeches from ECB or Fed either, as both central banks have entered blackout periods ahead of upcoming meetings. During the week: Later in the...

Pull Back in Treasury Yields Boosted Stocks to New Record, Dollar Set Up for More Downside

Dollar tumbled broadly again as falling treasury yield pushed US and German stocks to new record highs. Near term trend in the greenback should have reversed, but it's unsure whether it's ready for medium term down trend resumption yet. At least, EUR/USD will have to break through 1.2 handle...

Sunset Market Commentary

Markets The better the US eco data get, the more adverse the market reaction becomes. It fits with the view that markets turned into reflation hibernation at the start of Q2 2021. Markets finally aligned with the Fed’s message not to frontrun on policy normalization any time soon. The US...

ECB Preview: An Appetizer For The June Meeting

The ECB meeting on Thursday next week will be a stock taking meeting with focus on the resilient economic data and positive outlook for coming months while Lagarde will face questions on the recent PEPP purchase behaviour. The PEPP data has only shown an uptick in gross purchase pace...

Sunset Market Commentary

Markets Not much news today. The economic calendar was all but empty and high-profile Fed speeches are not due until later today. Denmark is dropping the use of the AstraZeneca completely from its vaccination programme. Other (mainly EU) countries might follow this example. The news follows yesterday’s setback in the...

Dollar and Stocks Lower on J&J Vaccine Pause, Euro Rises

Dollar trades mildly lower entering into US session, after US FDA and CDC recommend pause of J&J COVID-19 vaccines on blood clot issue. DOW futures also turn south and point to slightly lower open. Meanwhile, UK Prime Minister Boris Johnson also warned that the fall in infections was due...

German ZEW economic sentiment dropped to 70.0, somewhat less euphoric

German ZEW Economic Sentiment dropped to 70.7 in April, down from 76.6, below expectation of 79.5. That's the first decline since November. Current Situation index improved to -48.8, up from -61.0, above expectation of -52.0. Eurozone ZEW Economic Sentiment dropped to 66.3, down from 74.0, below expectation of 73.2....