Here are some key economic indicators we should watch this week:
- Eurozone (N100-INDEX) ZEW Economic Sentiment Index
- Germany (DAX-INDEX) ZEW Economic Sentiment Index
- Eurozone (VGK) consumer confidence
- Germany Ifo Business Climate
- Eurozone inflation
- US Flash Manufacturing PMI (Purchasing Managers’ Index)
- Eurozone Flash Manufacturing PMI
Performance of the global markets
The iShares MSCI ACWI (ACWI), which tracks the performance of the global markets, showed a strong movement in January 2018, rising 7.5%. However, it fell 3% from February 1–16, 2018. Major markets around the globe also showed nervousness during that period.
Global growth peaked in January 2018, creating concern for market participants. The expectation of a more aggressive interest rate hike by the Fed added more nervousness to the recent market sell-off, and one market fall led to another. Investors around the globe also reduced their positions in the equity markets.
However, if we see these indicators rise significantly, we could see a further upside in the global markets.
You may also be interested in reading Recent Macroeconomic Data Add to Stock Market Worries.