German business confidence yesterday fell to its lowest point since December 2012. Figures from the IFO institute of economic research showed 7,000 companies expressed the sixth fall in business sentiment in a row. The IFO’s Business Climate index fell to 103.2.
IFO found that firms are less optimistic about current conditions, and future prospects than the previous month. The concern now is that Germany’s economy may not achieve any growth in the fourth quarter of 2014.
Although yesterday we saw that the UK passed its banking stress test, an analyst at the Lloyds Banking Group suggests it could struggle to pass the UK’s own, tougher, stress tests conducted in December. This is a concern to the pound as the main fear is a fall in the house price index which the UK has heavily been driven by. If stress tests are not passes then UK Banks may be forced to impose a stricter lending criteria.
13.30 USD: Durable Goods Orders are expected to rise from -18.4% to 0.5%.
15.00 USD: Consumer Confidence figure expected to increase from 86 to 87.
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