A light data calendar is likely to impart keen focus on the morning’s release of the German ZEW survey (0900 GMT). Readings in March exceeded market expectations for the current situation balance, with the rise in the expectations component more muted and falling short of consensus forecasts. “For April, further gains are expected in both balances, which will be one of the timeliest indicators of Eurozone activity at the start of Q2, not least given the historically close mapping of the ZEW survey to the bellwether IFO due later in the week”, says Lloyds Bank. Nevertheless, with the ZEW polling investors’ sentiment, changes in expectations do not always correlate strongly with economic conditions seen by the broader corporate sector.
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