Daily Market Report - 22/04/2015

EUR
German investor confidence unexpectedly fell for the first time in six months, signalling that the uncertainty induced by Greece’s debt crisis may be weighing on Europe’s largest economy. The ZEW Centre for European Economic Research said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, fell to 53.3 in April from 54.8 in March. Factory orders dropped in the first two months of the year as fears of a Greek default dampened demand.

Germany’s economy expanded 0.5 percent in the three months through March and will continue to grow at that pace in the remaining quarters of the year.
 
The economy is benefiting by the European Central Bank’s 1.1 trillion-euro ($1.2 trillion) quantitative-easing program, which has pushed yields on German bonds with a maturity of as long as nine years below zero and propelled the benchmark DAX Index to a record this month.
 
Greek bonds declined on Monday after Prime Minister Alexis Tsipras ordered local governments to move funds to the central bank. The decree illustrates the severity of the country’s financial impasse as month-end salary and pension deadlines draw closer and the International Monetary Fund insists on the timely payment of a 770 million-euro tranche on May 12.


Key Announcements
9:30am - GBP - The MPC Official Bank Rate Vote is forecast to remain unchanged. 

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