European Market Update - German IFO Data Falls Below Expectations in February

Discussion in 'Data Sets and Feeds' started by TradeTheNews, Feb 23, 2007.

  1. TradeTheNews

    TradeTheNews ET Sponsor

    - The European indices are currently trading in negative territory in the session weighed down by energy prices as oil trade above $60.
    - European government bonds are currently trading higher in the session after lower than expected IFO data was released in German. Over in the UK gilts are trading higher after the previous UK GDP figures were revised lower. France announced overnight that it would be selling €4.0 to €4.5B in 2017-2021 OATS on March 1.
    - French consumer spending came in well above expectations and rose to its highest level since February of 2000 on a y/y basis. With unemployment reaching a five and a half year low in December, unemployment has underpinned demand, leading to an increase in consumer spending, boosting economic growth.
    - German IFO data for the month of February fell slightly below estimates on all frontson signs that economic growth will slow. The IFO’s Abberger said that a significant burden can be felt from the VAT hike, weakening retail sales. Abberger noted that a slight ECB rate increase would be tolerable. IFO’s Nerb said that although retailers are currently reporting weaker business they expect an improvement later during the year.
    - The Norwegian unemployment fell to its lowest level on record during the month of December increasing pressure on the Norwegian Central Bank to raise interest rates during the coming months.
    - Preliminary fourth-quarter GDP data in the UK was in line with expectations at 0.8% q/q and 3.0% y/y. The previous figures were revised lowed to 0.7% from 0.8%% q/q, and to 2.7% from 3.0% y/y.
    - Front month crude oil futures are currently trading above the $61 handle, and sit near session high. Crude continues to rise as the UN deadline for Iran to halt nuclear enrichment passed on Feb 21.