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The Germany 30 is trading at 9959, broadly unchanged on the day while eurozone economic data continues to disappoint.
This morning, the German WPI (wholesale price index) and French inflation figures came in below expectations. It will take a lot more than a couple of soft economic updates to spur on belief that the European Central Bank will lower interest rates in the short term, but it paints a negative picture for the region. Now that the ECB has begun monetary easing traders will be keeping an eye out for weak economic indicators. Nowadays, bad news for the eurozone economies is good for eurozone stocks.
At 1.30pm (London time), the US will announce the jobless claims report and the consensus is for a decrease of 6,000. The US has now recouped all the jobs that were lost during the recession, so if today’s report is weak it could provide a boost to stocks.
As Brenda Kelly stated, the Germany 30 is finding resistance at 9965, and if the level is breached we could target 10,020.