EU Flash Manufacturing & Services PMI will come out on Friday at 11:00 MT time!
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, but there are still interesting movements on the market.
US Core monthly retails sales will be announced on Friday at 15:30 MT time.
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Canada will publish the monthly GDP growth on October 30 at 14:30 MT time.
The European Central Bank publishes the monetary policy statement alongside with an update on the interest rate on October 29, at 14:45 MT time.