The Gross Domestic Product reports for Germany, France, and the Eurozone as a whole are expected to be released tomorrow 14 February 2014. The reports will cover the respective GDP figures for the fourth quarter (Q4) of 2013. At this time, many experts foresee positive advances for all of these reports.
Readers are reminded that the GDP is the combination of a country`s consumption, investments, government spending and the difference resulting from comparing exports and imports. As such, it provides economists a snapshot of how a country is progressing over a given period of time. Additionally, it is important to point out that Germany is a driving economic force in the Eurozone as has been mentioned in past reports, and thus has a significant impact on the remainder of the members states in the economic union.
The report comes after earlier speculation that large European states like France and Germany had experienced a slowdown that would have hurt their production numbers as well as the overall GDP. Analysts note that it will be interesting to see which direction this report will lean in regarding these statistics leading into the new year.
While significant shifts in the value of the Euro following this report are unlikely, these figures are useful in helping observers determine how the European markets will move over the coming months.
U of Michigan Consumer Confidence Report to be Issued Friday
Economists and investors are eagerly awaiting tomorrow`s release of the University of Michigan`s Consumer Confidence report for the current month of February 2014. At this time, many experts have expressed the belief that the level of confidence by American consumers may have fallen off slightly from the numbers seen in January 2014?s report.
Analysts remind readers that the Michigan report is closely watched by experts due to the fact that it has a much faster turn around period than the official government issued report, thus providing observers with a more timely picture of the state of the economy at this time.
Analysts assess that while the reports from January on the American economy may have tempered some of the earlier excitement following the massive addition of jobs to the workforce in November 2013, the most recent reports appear to show a resurgence of in the US as it continues to bounce back from recession. Additionally, the fact that the unemployment rate which was released last week showed a further drop may help to boost confidence among consumers.
Analysts do not foresee any significant shifts on the value of the dollar following this report. However, this report should be taken as an important indicator for the American economy over the coming months.
Prices at WTI Fall on Previous Speculation
After having hit a four month high, it was reported on 13 February 2014 that the West Texas Intermediate felt the price of oil drop considerably. The cut in prices came after speculation by some investors pushed up the value of oil in trading to levels that many are now calling excessive.
Analysts note that price fluctuation has been rampant at the WTI energy market in recent months as observers attempt to gauge the real level of stockpiles in the world?s largest energy consumer. As questions over the supply and quantity have been left awaiting answers, speculation has played a significant role in leading to volatile pricing. Perhaps adding to the uncertainty over the direction of energy prices was the news that the Canadian Keystone pipeline had begun operating, moving oil from Canada down to the Gulf Coast of Texas.
Analysts believe that following this latest surge in prices, the market will likely even out as it attempts to moderate itself. As such, traders should look for a decrease in volatility over the coming days.