In the euro area the ZEW, IFO and PMI business surveys for March will attract attention after all three figures declined in January and February, with the financial uncertainty having a negative spill-over effect on economic sentiment. We expect the improved financial risk sentiment to result in a stabilisation but not a strong rebound in the three figures. The biggest increase should be seen in the financial ZEW expectations, whereas the economic survey indicators (PMI manufacturing and IFO expectations) are still faced with headwinds from weakness in global manufacturing, the stronger effective EUR and Brexit risks. On the other hand, the low oil price supports private consumption and hence the domestic-driven PMI services.
In the US we will see the release of the Markit PMI. After better regional indicators the US PMI is expected to rebound from 51.3 in February to 51.9 in March. The Richmond Fed Manufacturing index is also expected to rebound. We keep an eye on Fed's Evans when he speaks tonight after the somewhat hawkish comments from Lockhart and Williams yesterday. He is known to be dovish and he is a non-voting member of the FOMC.
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