With the EU summit out of the way and no major new developments out of Greece economic data scheduled for release are expected to be the main driver determining market direction today. Starting off with PMI data, they are likely to reflect the recent turmoil in financial markets either staying at low levels or deteriorating further.

Centre stage will be taking the important IFO index out of Germany. Having persistently beaten estimates over the past six month and bucking the overall trend seen throughout Europe where similar indices of individual countries showing declines in economic activity, it will be interesting to see if the renewed heating up of the financial crisis in the past few weeks will finally be bringing the ascend of the IFO to a halt.

In late trading US markets staged an impressive reversal yesterday. In order for markets to be able to build on these gains and maintain momentum it will be important that economic data scheduled for release especially the durable good orders will be able to at least match estimates. After last month’s data showed a substantial unexpected decline a respectable rebound is needed in order to alleviate fears that a negative trend is in the process of being developed heralding the onset of another economic slowdown.

Markus Huber - Head of German HNW Trading - ETX Capital
www.etxcapital.com