Week Ahead: Economic Indicators (Europe)

Hey, Traders!
For the April 21st week, here is a list of all of the major economic indicators being released during the European Session, with a brief synopsis of what they represent and what to possibly expect from the markets in reaction.

Tuesday
Eurozone Consumer Confidence
A monthly survey of consumers in the EU, it provides a broad measure of consumer sentiment. It also probes into their perceptions towards their past and also their expected future financial conditions.

What to expect:
A higher than expected reading could displease bond traders because it could lead to an acceleration in borrowing and shopping, this could fuel faster economic growth and stoke inflation.

Wednesday
French, German UK, Eurozone Manufacturing PMI’s
The Manufacturing Purchasing Managers’ Index (PMI) provides an estimate of manufacturing business activity for the preceding month by using information obtained from a representative sector survey incorporating around 500 companies. Results are compiled into a single index which can range between 0 and 100. A reading above 50 signals rising activity versus the previous month and below 50 the faster activity is contracting.
What to expect:
A higher than expected reading should be taken as positive/bullish for the EUR/ GBP, while a lower than expected reading should be taken as negative/bearish for the EUR/GBP.

French, German UK, Eurozone Services/Composite PMI’s
Composite
The Composite Purchasing Managers’ Index (PMI) provides an estimate of private sector output for the preceding month by combining information obtained from surveys of around 1,000 manufacturing and service sector companies. Results are compiled into a single index which can range between zero and 100. A reading above 50 signals rising activity versus the previous month and below 50 the faster activity is contracting.
Services
The Services Purchasing Managers’ Index (PMI) measures the activity level of purchasing managers in the services sector.
The report is based on surveys of over 300 business executives in private sector services companies.
Data is usually released on the third working day of each month. Each response is weighted according to the size of the company and its contribution to total manufacturing or services output accounted for by the sub-sector to which that company belongs.
Replies from larger companies have a greater impact on the final index numbers than those from small companies. Results are presented by question asked, showing the percentage of respondents reporting an improvement, deterioration or no change since the previous month.From these percentages, an index is derived: a level of 50.0 signals no change since the previous month, above 50 signals an increase., below 50 a decrease.
What to expect:
A higher than expected reading should be taken as positive/bullish for the EUR/GBP, while a lower than expected reading should be taken as negative/bearish for the EUR/GBP.

Thursday
German IFO
Business Climate
The German Ifo Business Climate Index rates the current German business climate and measures expectations for the next six months. It is a composite index based on a survey of manufacturers, builders, wholesalers and retailers. The index is compiled by the IFO Institute for Economic Research.
Expectations
German Business Expectations rates the expectations of businesses in Germany for the following six months. It is a sub-index of the German Ifo Business Climate Index.
Current Conditions
The German Current Assessment rates current business conditions in Germany, without considering future expectations. It is a sub-index of the German Ifo Business Climate Index.
What to expect:
A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.

Friday
UK Retail Sales
Retail sales measure the total receipts at stores that sell durable and nondurable goods. The data include all internet business whose primary function is retailing and also cover internet sales by other British retailers, such as online sales by supermarkets, department stores and catalogue companies. Headline UK retail sales are reported in volume, not cash, terms but are available in both forms. The data are derived from a monthly survey of 5,000 businesses in Great Britain. The sample represents the whole retail sector and includes the 900 largest retailers and a representative panel of smaller businesses, including internet sales. Collectively, all of these businesses cover approximately 90% of the retail industry in terms of turnover.
What to expect:
With consumer spending a large part of the economy, market players continually monitor spending patterns. The monthly retail sales report contains sales data in both pounds sterling and volume. UK retail sales data exclude auto sales.
The pattern in consumer spending is often the foremost influence on stock and bond markets. For stocks, strong economic growth translates to healthy corporate profits and higher stock prices. For bonds, the focus is whether economic growth goes overboard and leads to inflation. Ideally, the economy walks that fine line between strong growth and excessive (inflationary) growth.