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

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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