Yesterday’s German monthly retail sales figures unexpectedly jumped higher, and it looks like Germany’s influential role in the EU has also helped create better-than-expected EU retail sales figures. Forecasts had been for an increase of 0.2%, but the final figure was up 1.4%.
No doubt Mario Draghi will be pleased to see that the positive sentiment prevalent in Germany has translated into increased spending. Ultimately this should help the deflation that has been hanging over the EU during the last quarter. However, although that is certainly good for the macro picture in Europe, it appears that a more cautious mindset has crept in for European traders.
Tonight, after the European markets have closed, we will see the release of the minutes from the last FOMC voting meeting. This was the meeting where the decision to start tapering the US debt-purchasing scheme was finally taken. Traders will no doubt be poring over the text in an effort to glean any insight into future actions and timeframes.
Since this is the case, a note of caution should be used for index traders, as the Germany 30 continues to hover just above the longer-term support of the bullish trend but below the December highs.