Frankfurt Letter, week beginning May 31
The European Central Bank
The governing council of the European Central Bank will gather in Vienna on June 2 for a policy meeting after which a press conference will be held. Analysts do not expect any further decision to be taken, as the ECB already has twice revealed its stimulus since December.
The ECB will also present new euro-area projections at the press conference. We may see some updates on both inflation and growth outlooks.
News from Germany
The inflation rate in Germany as measured by the consumer price index is expected to be 0.1 percent in May 2016. Based on the results available so far, the German Federal Statistical Office (Destatis) also reports that consumer prices are expected to increase by 0.3 percent in April 2016.
Additional 1.1 million air passengers seen in 1st quarter 2016
In the first three months of 2016, a total of 22.6 million passengers departed from German airports. As reported by Destatis, this represented an increase of 1.1 million from the corresponding period of the previous year showing a growth rate of 5.3 percent.
German Economists oppose "Brexit"
An overwhelming majority of German economists are opposed to the U.K. leaving the European Union, as revealed by the Munich-based Institute for Economic Research (Ifo). The Ifo Institute with the Frankfurter Allgemeine Zeitung’s latest economists panel survey shows that 85 percent of respondents are against a Brexit, while only 10 percent are in favor.
-Rising Export Expectations
German businesses are somewhat more confident with regard to export growth. Export expectations rose from 4.1 in April to 5.9 balance points in May. However, global economic momentum remains weak and German exports will only grow slightly as a result.
The week ahead
This week on the data side, the global markets will monitor the Eurozone's industrial production, unemployment rate and a flash estimate euro area inflation.
The European Central bank meeting will be one of the top agenda items for market participants to monitor.