The next week should be off to a quiet start, considering the lack of noteworthy earnings or economic releases scheduled for Monday morning. However, Germany's central bank, Deutsche Bundesbank, will release its monthly report for August, which could garner some attention, given the sparse event schedule.
Bundesbank Monthly Report (Monday, August 20, at 6:00 a.m. ET)
- Why it's important
- The German economy is the growth engine of the European Union, therefore fresh commentary on the state of affairs from the country's central bank may influence the outlook for growth in the region.
- The monthly report covers a broad range of subjects, including economic conditions, public finances, securities markets, and balance of payments.
- A closer look
- The July report noted that while the German economy gained only slight momentum in July, industrial output increased at a strong rate with new orders resuming their upward climb.
- The July report acknowledged a continuation in the country's construction boom while employment metrics improved. Upward pressure on consumer prices was described as moderate, though import prices excluding energy increased sharply as the euro weakened.
- In addition to the usual subjects, the July report included commentary on the Chinese economy and a study of potential spillover effects that could result from a sharp downturn in China.
- What's in play?
- German Equities:
- DAX Index
- iShares MSCI Germany ETF (EWG)