Tomorrow will see the release of the annual EU M3 Money Supply along with private loans and German-specific figures such as unemployment change. These will be assessed by the markets in order to gain a sense of direction for both the German and European Union’s economic outlook. Arguably, it is the issues in the afternoon that will have more relevance.
Federal Reserve chair Janet Yellen is expected to testify in front of the Senate Banking Committee in Washington on Thursday. This will no doubt delve into the current and foreseeable health of US banks. It will also cast an eye around the global issues that they will be facing, along with any changes to the Fed’s reduction of the debt-purchasing scheme.
It is not often that the DAX lags behind the FTSE 100 but, at present, the German index has bigger issues to worry about. Representative of a more export-driven economy, the index has been affected by China and the reducing demand from the Asian powerhouse.