Market Movers ahead
- In the US, the key event of the coming week is the FOMC meeting. We do not expect the Fed to change its rhetoric much. Importantly, the ‘extended period’ phrase will probably be removed, sending a clear signal of the ZIRP remaining in place for some time yet.
- In the eurozone, attention will focus on the German ZEW indicator. Over the past couple of months, the ZEW has trended down, underlining the current risk of a double-dip in the eurozone economies. However, we feel comfortable about the outlook and expect a modest improvement in the ZEW going forward.
Global Update
- Stock markets have recovered sharply over the past month. Two main factors seem to explain this development. First, the Greek debt crisis has abated after more clear backing for Greece from the EU. Second, strong US job numbers have raised hopes that the recovery will prove sustainable. Note, however, that another correction in equities could be in sight before long.
- In the eurozone, talks about the creation of a European Monetary Fund (EMF) continue. Last Sunday, German finance minister Wolfgang Schäuble said that he would present proposals for a European monetary fund soon.
Focus
- In the past week, we published our Global Scenarios – March 2010 with updated forecasts for the global economy. Read an excerpt from the publication.
- We throw the spotlight on the Chinese economy, which has grown at a rapid pace recently. Are we facing a ‘growth miracle’ or will China be the next bubble to burst?
