ECB will behave data dependent on the issue of tapering
The European Central Bank (ECB) has seen an informal consensus over the past month in which it agreed that the bank needs to taper its asset purchases, according to a Bloomberg report. They say the ECB may gradually wind down asset buying in steps of €10 billion.
However, experts believe that the decision to start tapering in April 2017 is dependent on growth and inflation data on the ECB’s economic projections for 2019.
On the other hand, speaking at an event in Madrid, ECB’s chief economist Peter Praet noted that the central bank is expected to keep interest rates low for an extended period of time.
-News from Germany
Siemens has signed a contract to continue the modernization of Iran’s railway network. The deal includes the supply of components for 50 diesel-electric locomotives destined for the Iranian Islamic Republic Railways (RAI).
In August 2016, production in industry was up by 2.5 percent from the previous month on prices which were seasonally and working day adjusted basis, according to provisional data of the Federal Statistical Office (Destatis).
In July 2016, the updated figure shows a decrease of 1.5 percent from June 2016, thus confirming the provisional result published in the previous month.
-The week ahead
This week, markets will continue to monitor the developments of the European banking sector and also global markets. In addition, the ECB's Governing Council Members’ speeches will be on the top of the agenda of investors.
Additionally, the Sentix Investor Confidence Index and The Zentrum fur Europaische Wirtschaftsforschung (ZEW) Economic Sentiment Index will be critical for investors.