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22 Feb 2013
European markets strong on German IFO despite EU Commission trimmed forecasts
The German DAX 30 (+1.13%), the French CAC 40 (+1.84%), the Italian FTSE MIB (+1.29%) and the Spanish IBEX 35 (+1.59%) are stronger on Friday, like all European equity indexes, despite some cuts in the growth forecast of key countries, such as Germany and France, in the European Commission report.
Investors cheered the better than expected German IFO February survey. All three German IFO survey criteria came in higher than expected: Business Climate rose from 104.3 to 107.4 (consensus of 105.0); Current Assessment rose from 108.1 to 110.1 (consensus of 108.5); Expectations rose from 100.6 to 104.6 (consensus of 101.3). Earlier, German GDP figures confirmed the -0.6% quarterly contraction in Q4.
Also on the back of the good mood is Fed's officials attempts to clarify the latest FOMC meeting minutes that alarmed investors of an end to QE sooner than previously thought. Fed's Bernanke will speak next week and might also try to sound dovish to compensate concerns over the minutes.
Markets will also be eyeing this weekend's election in Italy that could be key to what expect from the country in the war against the Eurozone debt crisis.
Futures for the American S&P 500, Nasdaq 100 and Dow Jones are signaling a higher opening between +0.30% and +0.45% ahead of FOMC member Powell and Fed Tarullo's speech later in the US session.
Investors cheered the better than expected German IFO February survey. All three German IFO survey criteria came in higher than expected: Business Climate rose from 104.3 to 107.4 (consensus of 105.0); Current Assessment rose from 108.1 to 110.1 (consensus of 108.5); Expectations rose from 100.6 to 104.6 (consensus of 101.3). Earlier, German GDP figures confirmed the -0.6% quarterly contraction in Q4.
Also on the back of the good mood is Fed's officials attempts to clarify the latest FOMC meeting minutes that alarmed investors of an end to QE sooner than previously thought. Fed's Bernanke will speak next week and might also try to sound dovish to compensate concerns over the minutes.
Markets will also be eyeing this weekend's election in Italy that could be key to what expect from the country in the war against the Eurozone debt crisis.
Futures for the American S&P 500, Nasdaq 100 and Dow Jones are signaling a higher opening between +0.30% and +0.45% ahead of FOMC member Powell and Fed Tarullo's speech later in the US session.