Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Monday morning kicks off with the publication of the German Ifo survey at 0900GMT, followed by Belgium business sentiment at 1400GMT and the Dallas Fed Manufacturing survey at 1330GMT.
Ifo business climate seen lower
Monday sees the release of the Ifo business climate indicator, which is expected to ease slightly in January after rising modestly in the previous month. Markets are looking for a downtick to 91.3, after December's 92.1. Last month's survey noted that companies are more optimistic about the next six months and are more satisfied with their current situation. Nevertheless, the lockdown is hitting specific sectors hard and the German government recently prolonged its national lockdown until mid-February.
In January, current conditions are expected to tick down 0.8 points to 90.5, while economic sentiment is seen higher at 93.5, up from December's reading of 92.8. Similar survey evidence suggests an upside risk. The ZEW expectations index rose to the highest level since September, while current conditions improved marginally. Meanwhile, the Senitx expectations index rose to an all-time high.
Belgium business confidence forecast to deteriorate
Business confidence in Belgium improved to -8.4 in December, up from -12.1 seen in November. December's reading marks the highest level since February and was led by an improvement in the service sector. The trade as well as the manufacturing sector recovered as well in December, while business confidence in the building sector eased marginally. In January, analysts are looking for a modest decline to -8.9.
Dallas Fed manufacturing index projected fell in December
The general business activity index of the Dallas Fed manufacturing outlook survey dropped from 12.0 to 9.7 in December, showing the second consecutive decline. Nevertheless, it was the fifth consecutive positive reading, signalling growth in the sector. The production index and new orders increased in December, while capacity utilization rose and shipments edged up as well.
The main events to follow on Monday include comments by ECB Executive Board members Christine Lagarde, Fabio Panetta, Frank Elderson and Philip Lane as well as BOE's Andrew Bailey.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.