Germany: Drop in IFO expectations to mirror the more modest PMI decline – Danske Bank

Research Team at TDS, suggests that while today's calendar is very thin, the rest of the week is full of important releases and central bank meetings.

Key Quotes

“Today, the only important data release will be the German IFO, which will give further indications of the outlook facing the Eurozone economy in light of 'Brexit'. So far, financial surveys in the likes of Sentix and ZEW have revealed noteworthy declines but Friday's PMIs suggest that the Eurozone economy is more resilient.

Overall, we expect a drop in IFO expectations today to mirror the more modest PMI decline. Irrespective, we still think it is too early to conclude that Eurozone companies are immune to the financial uncertainty stemming from the UK's EU referendum - especially given the very poor UK PMIs and the risk that the UK weakness could spread to the rest of the EU.”