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European stocks rise on strong earnings, US retail sales and bank numbers in focus
Posted 5 hours agoSharePrint
European stocks are charging higher after the US earning season kicked off on the right foot. US banks are often considered a proxy for the broader economy. As a result, their earnings are strong drivers of sentiment.
The upbeat numbers served to reinforce expectations of a strong US economic recovery. If the world’s largest economy is performing well, this is good news for the global economy and risk sentiment.
The European economic calendar is quiet this morning, with in-line inflation data from Germany providing little impetus.
Euro starts week with a yawn
February 22, 2021SharePrint
The euro has posted small gains in the Monday session. Currently, EUR/USD is trading at 1.2127, down 0.11% on the day.
German Business Climate improves
German data started the week on a positive note. The Ifo Business Climate improved to 92.4 in February, up from an upwardly revised 90.3 in January. This beat the estimate of 90.5 and marked a 4-month high. The Ifo institute statement noted that the German economy is performing well despite the lockdown “mainly because of the strong industrial economy”. Germany’s Manufacturing PMIs have been well into expansionary territory, and the January read improved to 60.6, its highest level since January 2018.
Euro rises on strong eurozone data
January 19, 2021SharePrint
After a quiet start to the week, the euro has posted gains in the Tuesday session. Currently, EUR/USD is trading at 1.2126, up 0.43% on the day.
Eurozone inflation confidence jump
There was positive news out of the eurozone on Tuesday, and investors responded with a thumbs-up, sending the euro above the 1.21 level. German CPI rebounded nicely in December, with a solid gain of 0.5 per cent. Inflation has struggled in Germany, as prior to this reading, CPI had declined in four of the past five months. Will we see inflation levels head higher in 2021? Although Covid-19 continues has resulted in lockdowns across the bloc which continue to hobble economic activity, the roll-out of Covid vaccines is expected to turn the tide and result in a resurgence in the economy and send inflation higher.