Busy 1st half of the week on the economic data front.
The German economy was in focus.
In April, German factory orders (-0.20%) and industrial production (-1.00%) unexpectedly fell, following solid gains in March.
A modest increase in Germany’s trade surplus also disappointed, falling short of forecasts.
Economic sentiment figures from Germany and the Eurozone were also skewed to the negative. Sentiment towards the German and the Eurozone economies weakened marginally in June.
The numbers were not enough to spook the markets ahead of Thursday’s ECB policy decision and press conference.
Providing support in the early part of the week were finalized 1st quarter GDP numbers for the Eurozone.
Quarter-on-quarter, the Eurozone economy contracted by a modest 0.3%, revised up from a prelim 0.6% contraction.
In the 2nd half of the week, the focus was on the ECB and the all-important press conference.
Upward revisions to growth and inflation for this year raised the prospects of a possible nearer-term tapering. The lack of chatter on tapering, however, limited the damage. The ECB’s inflation forecasts also pointed to easing inflationary pressures in 2022 and 2023, which also a positive for the majors.