A considerable slow down in the US inflation has supported the fund markets, regaining investors’ enthusiasm towards riskier assets. This can be well observed in the crypto currency growth dynamics. But considering the macro economic values of the biggest European economies, let’s pay extra attention to the upcoming final data release on the Germany’s inflation level. This will take place on Tuesday, the 17^th of January. The economists predict a 0.8% decline in the consumer prices index in December. A confirmation of the prediction or a release of stronger data may produce an additional support for the stocks market.

Also, let’s consider the current economy conditions index and economy mood in Germany by ZEW.

Last week leaders and outsiders:

DAX:

Top: Fresenius Medical Care AG & Co. KGaA St +1.85%, Sartorius AG Vz +1.73%, Fresenius SE & Co. KGaA +1.21%

Flop: Covestro AG -1.63%, BASF SE -1.1%, Airbus SE -0.94%

EURO STOXX 50:

Top: Banco Bilbao Vizcaya Argent +1.25%, Danone +1.24%, Total S.A. +1.21%

Flop: BASF SE -1.5%, Adyen -1.18%, Airbus SE -1.09%

Analyzing the leaders and outsiders, we do not observe much of a deviation, which suggests there’s a clear uncertainty of the market. Most probably, this is due to an uncertainty of the Fed monetary policy prospects and the general economy state in the biggest European countries. A decline in the business activity restrains the fund indices from a more powerful growth.

Bond market:

After a long term decline in the Germany and France profitability we observe moderate growth, which represents some traits of a correction. That’s the reason the buyer activity on the stocks market goes down, while we still do not see any clear sales. To put it straight, the market is in the uncertainty phase and most probably the situation will remain as it is throughout the following 2 weeks.

Oil market

Aggressive growth in the oil market has come to an end suggesting the investors already adjusted their positions which consider the quarantine restrictions softening in China. Now the market needs an additional growth driver, which may as well be the Fed decision on the key rate. However, since there are two weeks before this event, the oil may loose a bit.

Also, it is of vital importance to consider the upcoming publication of the OPEC monthly report planned for Tuesday, the 17^th of January. Shall it indicate a prospect of the physical demand going up including due to China’s opening, the speculative demand may also increase.