020 7898 0500The two main releases from the eurozone yesterday were the flash inflation rate for March and unemployment rate for February. Both came in as expected at 1.4% and 8.5% respectively. It means, at first glance, that eurozone inflation has crept nearer to the European Central Bank’s 2% target rate. The jobless rate is now the lowest it has been since December 2008.
There was also some Italian election news, as we learned that one day before formal government consultations are set to begin, the leader of Italy’s anti-establishment Five Star Movement ruled out forming a coalition with Silvio Berlusconi’s Forza Italia party. On 4 March, the election resulted in a hung parliament and it was felt that Five Star were prepared to discuss a deal with all parties. However, yesterday put paid to that and it does raise the possibility of no deal, which could lead to a new election.
Today we have composite and services PMI from Germany and across the eurozone. We will also see the eurozone’s retail sales for February and German factory orders.
