EMU Economic Indicators Preview (Week of 18 to 24 January 2010)

• German ZEW economic sentiment (January): up
• PMI manufacturing index EMU (January): up

The German ZEW economic sentiment is likely to have improved in January, just like the ifo business expectations and the US ISM manufacturing index. German yield spreads widened initially, but have now narrowed again slightly, just like long-term interest rates, whereas short-term rates have decreased. After having depreciated initially, the euro has now appreciated somewhat. The DAX has continued going up. However, crude oil prices went up temporarily, only to fall slightly again.

Likewise, French and Belgian business confidence and the Purchasing Managers' Indices for the manufacturing sector in Germany and in the EMU will probably have improved in January.
EMU industrial new orders could have recovered in November, like the corresponding German figure.

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