Euro Zone Confidence Indicators Slightly Improve

Daily Forex Fundamentals | Written by ecPulse.com | Oct 29 09 09:09 GMT |

After a quiet beginning, we see that the euro zone is finally releasing major economic data that is expected to show confidence in the zone improving, so that we can be sure that businesses and consumers are looking forward to the government and ECB measures. First on our calendars is Germany's unemployment rate for October, which is expected to rise higher to 8.3% from 8.2% and this continues to reveal that the labor market remains fragile. The softening job market is negatively impacting growth since it leaves Germans euro less; therefore weighing on spending levels. Unemployment continues to rise as a result of industries demobilizing employees as a way to reduce expenses, since production output has been lowered due to the global downturn as they deal with eroded profits. Also scheduled to come out from Germany is unemployment change for the same time frame, with expectations showing that it will rise to 15 thousand from the prior shed of 12 thousand. Now turning to the zone; the business climate indicator, which assesses the economical situation, is presumed to improve slightly to -1.90 from -2.07; therefore more evidence that the ECB unorthodox measures have been successful at restoring confidence. From the expectations of rising confidence, we see that the government interventions are kicking in as the pace of the economic deterioration is easing, while the central bank is buying 60 euro-dominated bonds as a way to provide tranquility in the financial system. Consumer confidence for October is also scheduled with projections showing that it will inch higher to -18 from -19, while economic confidence is presumed to rise to 84.4 from 82.8. In addition, industrial confidence for October forecasted to also incline to -22 from -24, while services confidence for the same month is anticipated to slightly rise to -8 from -9. However, with rising confidence comes greater spending that will help sooth the recession in the euro zone, as they contracted by 2.5% in the first three months of the year, which was the worst since 1995 and shrank by 0.2 in the second quarter. The euro area is trying its hardest to shake off the worst recession witnessed since the post world war era. The European stock market yesterday ended the session in the red zone; we saw DJ Euro Stoxx 50 shed 56.71 points or 2.00% to 2778.46 points; CAC 40 fell 80.17 points or 2.14% to 3663.78 points; while DAX dipped 138.75 points or 2.46% to 5496.27 points. Ecpulse disclaimer: The content of ecPulse.com and any page in the website contain information for investors/traders and is not a recommendation to buy or sell currencies, stocks, gold, silver & energies, nor an offer to buy or sell currencies, stocks, gold, silver & energies. The information provided reflects the writers' opinions that deemed reliable but is not guaranteed as to accuracy or completeness. ecPulse is not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trades currencies, stocks, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, stocks gold, silver &energies presented should be considered speculative with a high degree of volatility and risk