Germany: Focus on IFO data – TD Securities

Analysts at TD Securities suggest that markets will be watching Germany's September IFO data to confirm whether the outlook is in line with the more upbeat ZEW survey last week, or yesterday's disappointing PMI print.

Key Quotes

“We think that the IFO is more likely to be in line with the PMIs, so look for the headline to fall to 93.3 (mkt 94.5), which would make for a new post-financial crisis low.”

“If confirmed, then the survey data is pointing to a steeper Eurozone slowdown in Q3 than the meager 0.2% q/q growth rate reported in Q2, suggesting that the ECB will still have to deliver further stimulus beyond what was already announced earlier this month.”