Market movers today
Focus will remain on Greece. The monitoring institutions need to approve the policy programme submitted by the Greek government for the agreement reached on Friday to be effective. We expect it to be approved but probably not until after market close in Europe. If the programme is not approved, there will be an extraordinary Eurogroup finance minister meeting tomorrow.
The German Ifo index is expected to rise further in February, continuing the trend from Q4 last year. The ZEW index has proved a good indicator for the Ifo index and it continued its climb in February. Fundamentals are providing strong support for the recovery at the moment as the oil price and record-low bond yields give support to consumers, while the sharp weakening of the EUR benefits German companies.
US existing home sales for January are due. They are expected to have fallen a bit after a decent gain in December. Overall US housing continues to be on the soft side, failing to stage a real recovery despite the decline in mortgage rates.
The rest of the week's main events are Janet Yellen's testimony to Congress tomorrow, euro and US inflation, euro M3 and credit growth and Chinese PMI.
In Scandinavia focus is on the Danish central bank after the DKK weakened markedly on Friday on speculation about possible capital controls.
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