German GDP figures show that the country has avoided a recession, coming in at 0.1% verses the -0.1% that was expected. Year-on-year, the figure came in as predicted at 0.5%, showing very slight growth. Later today, we will also see Eurozone-wide GDP figures, expected to be low but still in the positive. We will also see a number of keynote speeches from ECB and Bundesbank figures, and the markets will be watching closely for any policy hints.
The euro is still trading within a narrow range, with better-than-expected industrial figures failing to push it higher. The markets had expected industrial production to fall by 0.3, but it actually grew by 0.1. Year-on-year, it is still in contraction, declining 1.7 compared to the previous September.
Christine Lagarde has taken the ECB’s Governing Council on a retreat in an attempt to help resolve differences over her predecessor Mario Draghi’s final decisions on resuming the central bank’s stimulus programme. Differences between council members have spilled over into the media and, if nothing else, Lagarde will be looking to keep them contained.
