Ratings agencies upgrade the periphery once more, German data disappoints
The Week In Hindsight, 23 May 2014
European equity markets rose this week as investors increased bets that the opening of June will see the ECB take action against stagnant growth. This was as another week brought with it another round of less than impressive economic data from the continent, most notably Germany.
The week’s numbers saw businesses in Europe’s largest economy revise down their assessment of economic conditions while the forward looking Manufacturing PMI showed the industrial outlook worsening over the months ahead. French manufacturing and services data also under performed against expectations while Italian posted a contraction for the month of April.
Parts of the European periphery received a show of support from the financial world during the week as both Greece and Spain received upgrades to their credit ratings. Fitch upgraded Greece by one notch, while Standard and Poor’s upgraded Spain by a notch also.
All in all, our outlook for European policy as well as European markets remains in place and unchanged. This is that, in line with the general consensus, we expect further stimulus in the form of a rate cut to be forthcoming at the up and coming ECB meeting in two weeks time. For further information relating to this, please see our previous posts under the heading Europe.
EU Indices (Dax, black)

Disclaimer
The information provided by Stockatonia, via both the telephone as well as the Stockatonia websites, is prepared as general information and general information only. As a result, the information in question does not constitute a recommendation to either buy and sell or not to buy and sell, any items or products treated as securities or financial instruments under UK laws and regulations.
To the extent that it is necessary, you agree not to act directly upon any information made available via telephone contact with Stockatonia and its representatives, as well as online contact with Stockatonia and its representatives, without first consulting your own financial adviser or investment adviser.
To the extent that it is permitted under the laws of the United Kingdom, Stockatonia and its representatives can accept no liability whatsoever in relation to losses incurred by clients, prospective clients and members of the public where these losses have arisen out of action, or inaction, which has taken place as a result of any form of contact with Stockatonia or its representatives.
This may be contact carried out by internet-driven media, letters and materials which are sent by post as well as information conveyed by Stockatonia and its representatives via the telephone.
Share This Story, Choose Your Platform!
Leave A Comment