The Takeaway: survey German ZEW mixed-> GDP eurozone lower than expected-> insensitive Euro as remains to focus on political developments in the market
The Centre of base German ZEW said its monthly index of analysts and investors expectations fell to 10.8 23.4 in April. The current index of the situation from the previous 39.0 to 44.1.
The ZEW index attempts to predict the economic evolution of six months in advance. The Centre added that economic conditions have stabilized and said that he generally expected additional positive developments from the Germany over the next 6 months.
During this time, economic growth in the Euro zone stagnated in the first quarter of 2012, announced today that the EU Statistics Office. The growth was 0.0% compared to the fourth quarter of 2011. The report came after an earlier report which said German economic growth was more than expected in the first quarter. The German economy has withstood the recession as ultra low unemployment support consumer spending and offset a decline in international demand.
However, concerns about the uncertain Greek political situation caused some doubts on the future of the Euro. The uncertain results of the recent election of Greek and the inability of the Greek leaders to form a stable government threw markets in limbo and cast doubts on the future of the Greece to the single currency. A Greek exit would lead to European Governments to lose huge sums of money loaned to the Greece and would probably throw the entire region into economic chaos.
The latest batch of data did not move markets. The Euro is weakening slightly intraday after climbing high, on the back of the stronger than expected data German.
The Centre of base German ZEW said its monthly index of analysts and investors expectations fell to 10.8 23.4 in April. The current index of the situation from the previous 39.0 to 44.1.
The ZEW index attempts to predict the economic evolution of six months in advance. The Centre added that economic conditions have stabilized and said that he generally expected additional positive developments from the Germany over the next 6 months.
During this time, economic growth in the Euro zone stagnated in the first quarter of 2012, announced today that the EU Statistics Office. The growth was 0.0% compared to the fourth quarter of 2011. The report came after an earlier report which said German economic growth was more than expected in the first quarter. The German economy has withstood the recession as ultra low unemployment support consumer spending and offset a decline in international demand.
However, concerns about the uncertain Greek political situation caused some doubts on the future of the Euro. The uncertain results of the recent election of Greek and the inability of the Greek leaders to form a stable government threw markets in limbo and cast doubts on the future of the Greece to the single currency. A Greek exit would lead to European Governments to lose huge sums of money loaned to the Greece and would probably throw the entire region into economic chaos.
The latest batch of data did not move markets. The Euro is weakening slightly intraday after climbing high, on the back of the stronger than expected data German.
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