All attention on the market is on the Brexit process. Fears over the no-deal Brexit pushed the British pound deep down yesterday after UK Prime Minister Boris Johnson claimed he was ready to abandon negotiations.
German investors are gloomy on economic rebound as morale is still dismal
A great number of investors actually don’t expect Germany’s economy to revive quickly from a poor patch in the nearer future. That’s what the ZEW research institute uncovered on Tuesday. What’s more, the organization added that its monthly poll drew attention to rather a dismal third quarter.
Huge worries as for tough ongoing trade clashes, the danger of a disorderly Brexit, not to mention political uncertainty at home are definitely putting enormous pressure on the European Union’s number one economy that is currently in its ninth year of surge.
In addition to this, the poll disclosed that economic sentiment among market participants in the European bloc’s leading economy managed to ascend da bit to -24.1 in November in contrast with October’s outcome of -24.7. On the contrary, a Reuters consensus estimate amounted to -25.0.
However, investors' evaluation of the German economy's current conditions headed south to about 58.2 from October’s result of 70.1, which is in turn below a Reuters consensus estimate of 65.0.
ZEW told that the poll actually reflected recent figures for retail sales, industrial output as well as foreign trade in Germany and also hinted at poor surge in the third quarter. Furthermore, it drew attention to the fact that hopes for the next six months don’t show any improvement.
Well, it simply means that survey participants don’t expect to see a fast revival of the currently weak development of the German. That’s what ZEW President, Achim Wambach revealed in a statement.
The previous week, a number of economic advisors for the German cabinet had surge estimates for this year slashed to 1.6% from a previous forecast of 2.3% and also for next year to nearly 1.5% in contrast with an earlier estimate of about 1.8%.
The market sentiment is mixed, and the US dollar is trading near the lowest levels for over two years. Let’s have a look at the main market movements today.
The market sentiment deteriorated because of the election uncertainty and worries about rising virus cases all over the world. Let's make some analysis!
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.