The confidence of German investors in the future increased sharply in January, according to research institute ZEW. Expectations for exports in particular boosted confidence. Economists expected the index to reach a level of 60, but the index increased to a level of 61.8 from a level of 55 a month earlier. The index measuring confidence in the current situation was still negative with a position of minus 66.4 against minus 66.5 in December. According to the ZEW, expectations for the Eurozone economy also improved in January, with a level of 58.3 from 54.4 in December.
The economic recovery from the corona crisis seems to start sooner than foreseen in large European countries such as Germany and France, according to the International Monetary Fund (IMF). The IMF has revised its forecasts for the largest eurozone economies. The German economy shrank 5.4% last year, and is likely to pick up 3.5% in 2021, according to new estimates. In France, the crisis shrank by 9% last year, this year 5.5% growth is expected.
Janet Yellen, the first female treasury secretary in the United States, if her nomination is approved, appeared in the Senate before a special committee on Tuesday. Her testimony made it clear that she is breaking with the Trump administration on many points. She called climate change and other environmental issues an “existential threat” to the US economy. A pre-published statement stated that Yellen is in favour of new support measures to mitigate the economic consequences of the corona crisis. Last week, Biden presented a plan for a $ 1.9 trillion corona support package.
The 6M Euribor is unchanged at -0.53% compared to previous business day. The 10Y Swap increased with 1 basis point to -0.22% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.
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